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Exercise 14A-1 (Algo) Basic Present Value Concepts [LO14-7] Annual cash inflows that will arise from two competing investment projects are given below: Year Investment
Exercise 14A-1 (Algo) Basic Present Value Concepts [LO14-7] Annual cash inflows that will arise from two competing investment projects are given below: Year Investment B Investment A 1 2 $ 3,000 $ 6,000 4,000 5,000 3 5,000 4,000 A 6,000 3,000 $ 18,000 $ 18,000 The discount rate is 10%. Click here to view Exhibit 14B-1 and Exhibit 14B-2. to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment. Present Value of Cash Flows Year Investment A Investment B 1 2 3 4 $ 0 $
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