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Good Society is considering two 4-year investment opportunities. Option A is to buy a machine A now and pay $4,500 today, $300 at the end

Good Society is considering two 4-year investment opportunities. Option A is to buy a machine A now and pay $4,500 today, $300 at the end of the first, second, third year, and $1,000 in the last year. Option B is to buy a machine B now and pay $3,646 today, and $200 for the next years. Assume an annual discount rate of 9% (please show calculations and in the explanation include the method you used to evaluate the investments).

Year 1 2 3 4
Cash inflows Option A $2000 $2000 $2000 $2000
Cash inflows Option B $1500 $1500 $1000 $1000

Q. Assume that now the director of Good Society knows the cash inflows associated with the two investments (see the following table). Does that information change the response

in (b)? Why?

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