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Questions 4 and 5). The information below is for questions 4&5. Jiminez Company has two investment opportunities. Both investments cost $9,000 and will provide
Questions 4 and 5). The information below is for questions 4&5. Jiminez Company has two investment opportunities. Both investments cost $9,000 and will provide the following net cash flows: (assuming that each cash flow is received at the end of the year) Year Investment A Investment B 1 $3,000 $3,000 N $3,000 $4,000 $3,000 $2,000 4 $3,000 $1,000 Question 4. What is the total present value of Investment A's cash flows assuming an 8% minimum rate of return? Show your calculation? Should the company accept this project? Question 5. What is the Internal rate of return (IRR) of Investment A?
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