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PV for all three A company has two investment opportunities. Alternative 1 (Alt. 1) pays $12,000 (inflow) two years from now, and $18,000 (inflow) four

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PV for all three

A company has two investment opportunities. Alternative 1 (Alt. 1) pays $12,000 (inflow) two years from now, and $18,000 (inflow) four years from now. Alternative 2 (Alt. 2) pays $5,500 (inflow) at the end of every year for five years. Interest is 5.93% compounded annually. Which is the preferable alternative? Round the values for PV to the nearest cent. Round the values for Alt. 1 and Alt. 2 to the nearest dollar. TWO YEARS FOUR YEARS FIVE YEARS PNY 1 1 o 1 C/Y 1 00 1 > o 1

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