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MC Qu. 110 Alfarsi Industries uses the net... Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual

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MC Qu. 110 Alfarsi Industries uses the net... Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,100 and will produce cash flows as follows: Investment End of Year $ 0 $8,100 8,100 8,100 24,300 The present value factors of $1 each year at 15% are: 0.8696 0.7561 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of investment Ais: M e Choice The net present value of Investment A is: Multiple Choice $(15,100). $3,394, $(18,495). $15,977. $9,200

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