Question
Investment A costs $2,000 today, with cash inflows of $400, $400, $400, and $1,200 in years 14 respectively. Investment B costs $1,000 today and will
Investment A costs $2,000 today, with cash inflows of $400, $400, $400, and $1,200 in years 14 respectively. Investment B costs $1,000 today and will have one cash inflow of $1,100 in 1 year. If interest rates are 8%, what is the NPV of investment A?
(Round to the nearest cent and do not enter the dollar sign)
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
15th edition
978-0077522940
