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Morrisey Company has two investment opportunities. Both investments cost $6,900 and will provide the same total futuro cash inflows. The cash receipt schedule for each
Morrisey Company has two investment opportunities. Both investments cost $6,900 and will provide the same total futuro cash inflows. The cash receipt schedule for each investment is given below: Period 1 Period 2 Period 3 Period 4 Total Investment I $ 1,950 1,950 2,950 5,520 $12,370 Investment II $ 1,950 3,140 4,330 2,950 $12,370 What is the net present value of investment assuming an 12% minimum rate of rotum? (Pati and PVA of Sn (Do not round intermediate calculations. Round your answer to nearest whole dollar) Multiple Choice
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