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Jiminez Company has two investment opportunities. Both investments cost $5,700 and will provide the following net cash flows: Year Investment A Investment B 1 $
Jiminez Company has two investment opportunities. Both investments cost $5,700 and will provide the following net cash flows:
Year | Investment A | Investment B | |||||||||
1 | $ | 3,850 | $ | 3,850 | |||||||
2 | 3,850 | 5,020 | |||||||||
3 | 3,850 | 2,850 | |||||||||
4 | 3,850 | 1,340 | |||||||||
What is the net present value of Investment A's cash flows assuming an 12% minimum rate of return? Use Appendix Table 2. (Do not round intermediate calculations. Round your answer to the nearest whole dollar.)
Multiple Choice
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$3,850.
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$10,320.
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$13,097.
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$5,994.
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