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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 $14,300 and will produce cash flows as follows: End of Year 1 2 3 Investment B $9,700 $ @ 9,700 @ 9,700 29,100 The present value factors of $1 each year at 15% are: NH 0.8696 0.7561 8.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 D The net present value of Investment A is: Multiple Choice Multiple Choice $19,133 49:43 SOK $(22.148) $7,847 $14,800 $(14,300)

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