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Henrico Company has two investment opportunities. Both investments cost $6,100 and will provide the same total future cash inflows. The cash receipt schedule for each
Henrico Company has two investment opportunities. Both investments cost $6,100 and will provide the same total future cash inflows. The cash receipt schedule for each investment is given below: Investment I Investment II Period 1 $ 1,550 $ 1,550 Period 2 1,550 2,660 Period 3 2,550 3,770 Period 4 4,880 2,550 Total $ 10,530 $ 10,530 The net present value of Investment II assuming an 8% minimum rate of return would be which of the following amounts?
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