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ren Compute the present value of the cash inflows for each investment using a 11% discount rate. Show the calculation steps for the full mark
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Compute the present value of the cash inflows for each investment using a 11% discount rate.
Show the calculation steps for the full mark along with the formula. (8 marks)
Year(s)
2021
Amount of Cash Flows
Investment
Investment B
A
$45.000
Present Value of Cash Flows
Investment A
Investment B
50,000
2022
42,000
2023
Total
41.000
48,000
44.000
b. Compute the Net Present Value (NPV). (6 marks)
Investment A
Investment B
Present Value of Cash Flows
Initial Cost
Net Present Value (NPV)
Chp
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The Information Audit A Practical Guide
Authors: Susan Henczel, Sue Henczel
1st Edition
3598243677, 978-3598243677
