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Problem 4-B - Cash Flow Investment Decision (12 pts) Cash Flow Investment Decision Sandra has an opportunity to purchase any of the investments shown in
Problem 4-B - Cash Flow Investment Decision (12 pts) Cash Flow Investment Decision Sandra has an opportunity to purchase any of the investments shown in the following table. The purchase price, the amount of the single cash inflow, and its year of receipt are given for each investment. Which purchase recomendations would you make, assuming that Sandra can earn 10% on her investments? A) Calculate the NPVs and compare them (8 pts). B) Which one would you invest? Which one not?(4 pts) Single cash inflow Year of receipt Investment Price $18,000 600 3,500 1,000 $30,000 3,000 10,000 15,000 20 10 40
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