Problem $7-08$

A company has two investment possibilities, with the following cash inflows:

$\backslash$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.