1. Freefall, Inc., has two independent investment opportunities, each requiring an initial investment of $65,000. The companys required rate of return is 8 percent. The cash inflows for each investment are provided as follows.

1. Without resorting to calculations, which investment will have the highest net present value? Explain.
2. Calculate the net present value for each investment (remember to include the initial investment cash outflow in your calculation). Should the company invest in either investment? Round to the nearest dollar.