Question
Investment A costs $2,000 today, with cash inflows of $400, $400, $400, and $1,200 in years 1-4 respectively. Investment B costs $1,000 today and
Investment A costs $2,000 today, with cash inflows of $400, $400, $400, and $1,200 in years 1-4 respectively. Investment B costs $1,000 today and will have one cash inflow of $1,100 in 1 year. If interest rates are 5%, what is the NPV of investment A?
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Cost Accounting A Managerial Emphasis
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