Question
Question 4 Time: 10 minutes Total: 6 marks Annual cash inflows from two competing investment opportunities are given below. Each investment opportunity will require the
Question 4
Time: 10 minutes
Total: 6 marks
Annual cash inflows from two competing investment opportunities are given below. Each investment opportunity will require the same initial investment. Compute the present value of the cash inflows for each investment using a 5% discount rate. (PLEASE ROUND EACH DISCOUNTED CASH FLOW TO THE NEAREST CENT)
| Year | Investment X | Investment Y |
| 1 | $2,000 | 3,500 |
| 2 | 2,500 | 3,000 |
| 3 | 3,000 | 2,500 |
| 4 | 3,500 | 2,000 |
| Total | $11,000 | $11,000 |
- (Total: 6 marks; 3 marks for X and Y each)
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Financial And Managerial Accounting
Authors: John J. Wild
9th Edition
1260728773, 9781260728774
