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Net Present Value Freefall, Inc., has two investment opportunities, each requiring an initial investment of $65,000. The Required rate of return is 8%. The cash

Net Present Value

Freefall, Inc., has two investment opportunities, each requiring an initial investment of $65,000. The Required rate of return is 8%. The cash inflows for each are provided as follows.

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1. Before using calculations, which investment will have the highest net present value? Explain.

2. Calculate the NPV for each investment. Should the company invest in either investment?

3. Give 2 qualitative factors that may impact the companys decision.

Please show work ,I'm trying to understand the problem.

Investment Investment Z Year 1 Year 2 Year 3 Year 4 Total inflows $ 35,000 25,000 15,000 5,000 $ 80,000 $ 5,000 15,000 25,000 35,000 $80,000

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