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Morrisey Company has two investment opportunities. Both investments cost $5,600 and will provide the same total future cash inflows. The cash receipt schedule for each
Morrisey Company has two investment opportunities. Both investments cost $5,600 and will provide the same total future cash inflows. The cash receipt schedule for each investment is given below: Investment I Investment II Period 1 Period 2 Period 3 Period 4 Total $1,300 1,300 2,300 4,480 $9,380 $1,300 2,360 3,420 2,300 $9,380 What is the net present value of Investment ll assuming an 9% minimum rate of return? Use Appendix Table 1, (Do not round intermediate calculations. Round your answer to nearest whole dollar.)
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