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Problem 7 - 0 8 A company has two investment possibilities, with the following cash inflows: table [ [ Investment , Year 1 ,

Problem 7-08
A company has two investment possibilities, with the following cash inflows:
\table[[Investment,Year 1,Year 2,Year 3],[A,$1,600,1,900,2,100],[B,$1,300,1,300,1,300]]
If the firm can earn 6 percent in other investments, what is the present value of investments A and B? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar.
PV(InvestmentA): $
PV(InvestmentB): $
If each investment costs $4,000, is the present value of each investment greater than the cost of the investment?
The present value of investment A is the cost.
The present value of investment B is the cost.
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