Investment opportunity (A/B) should be chosen because the present value of cash flows is (higher/lower) than the present value of investment opportunity (A/B)

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Annual cash flows from two competing investment opportunities are given. Each investment opportunity will require the same initial investment. (Click the icon to view the competing investment opportunities.) (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Present Value of Annuity of $1 table.) Requirement 1. Assuming a 14% interest rate, which investment opportunity would you choose? Begin by computing the present value of each investment opportunity. (Assume that the annual cash flows occur at the end of each year. If using present value tables, use factor amounts rounded to three decimal places, X.XXX. Round intermediary computations and your final answer to the nearest whole dollar.) The present value of investment opportunity A is $ and the present value of investment opportunity B is $ 0 Data Table Year Investment 5,000 $ 9,000 4,000 9,000 18,000 9,000 27,000 $ 27,000 $ Print Done Present Value of Annuity of $1 Present Value of Ordinary Annuity of $1 6% 7% 8% 10% Periods 4% 5% 12% 14% 16% 8 9 10 11 12 0.962 0.952 1.886 1.859 2.775 2.723 3.630 3.546 4.452 4.329 5.2425.076 6.0025.786 6.733 6.463 7.435 7.108 8.111 7.722 8 .760 8.306 9.3858.863 9.986 9.394 | 10.563 9.899 11.11810.380 11.652 10.838 12.166 11.274 12.659 11.690 13.134 | 12.085 13.590 12.462 0.943 0.935 0.926 0.909 0.893 0.877 0.862 1.833 1.808 1.783 1.736 1.690 1.647 1.605 2.673 2.624 2.577 2.487 2.402 2.322 2.246 3.465 3.387 3.312 3.170 3.037 2.914 2.798 4.212 4.100 3.993 3.791 3.605 3.433 3.274 4.917 4.767 4.623 4.355 4.111 3.889 3.685 5.582 5.389 5.206 4.868 4.564 4.288 4.039 6.210 5.971 5.747 5.335 4.968 4.639 4.344 6.802 6.515 6.247 5.759 5.328 4.9464.607 7.360 7.024 6.710 6.145 5.650 5.216 4.833 7.887 7.499 7.139 6.495 5.938 5.453 5.029 8.384 7.943 7.536 6.814 6.194 5.660 5.197 8.853 8.358 7.904 7.103 6.424 5.842 5.342 9.295 8.745 8.244 7.367 | 6.628 6.002 5.468 9.712 9.108 8.559 7.6066.811 6.142 5.575 10.1069.4478.8517.824 6.9746.265 5.668 10.477 9.763 9.122 8.022 7.1206.373 5.749 10.828 10.0599.372 8.2017.250 6.4675.818 11.15810.336 9.604 8.365 7.366 6.550 5.877 11.470 10.5949.818 8.514 7.4696.6235.929 14 15 16 17 18 19 20 i Present Value of $1 Present Value of $1 7% 8% Periods 4% 5% 6% 10% 12% 14% 16% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 0 .962 0.925 0.889 0.855 0 .822 0.790 0 .760 0.731 0 .703 0.676 0 .650 0.625 1 0.601 0.577 0.555 0.534 0.513 0.494 0.475 0.456 0.952 0.943 0.907 0.890 0.864 0.840 0.823 0.792 0.784 0.747 0.746 0.705 0.711 0.665 0.677 | 0.627 0.645 0.592 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 0.458 0.394 0.436 0.371 0.416 0.350 0.396 0.331 0.377 0.312 0.935 0.873 0.816 0.763 0.713 0.666 0.623 0.5820 0.544 0.508 0.475 0.444 0.415 0.388 0.362 0.339 0.317 0.296 0.277 0.258 0.926 0.857 0.794 0.735 0.681 0.630 0.583 .540 0.500 0.463 0.429 0.397 0.368 0.340 0.315 0.292 0.270 0.250 0.232 0.215 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0.218 0.198 0.180 0.164 0.149 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.205 0.183 0.163 0.146 0.130 0.116 0.104 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 0.237 0.208 0.182 0.160 0.140 0.123 0.108 0.095 0.083 0.073 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0.108 0.093 0.080 0.069 0.060 0.051