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question 9 only H u ally for it to grow to $32,000 in 10 years? 7.18 9) Assume that two investments have a three-year life
question 9 only H u ally for it to grow to $32,000 in 10 years? 7.18 9) Assume that two investments have a three-year life and generate the cash flows shown below. Which of the two would you prefer? (Assume discount rates are same for two investments) Year Investment A Investment B $5,000 $11,000 $7,000 $9,000 $9,000 $7,000 $11,000 $5,000 A. Investment A has a higher present value. B. Investment B has a higher present value. C. Investment A and Investment B have the same present value, since the total of the cash flows is the same for both. D. No comparison can be made we need to know the interest rate to calculate the present value. 10) Consider the following timeline detailing a stream of cash flows: Year 1 $700 Year 2 $500 Year 3 $200 Year 4 $600 End of Year cash flow
question 9 only
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