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TB MC Qu. 11-110 (Algo) Alfarsi Industries uses the net present value... Help Save Alfarsi Industries uses the net present value method to make investment
TB MC Qu. 11-110 (Algo) Alfarsi Industries uses the net present value... Help Save Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments Each require an initial investment of $15,400 and will produce cash flows as follows: Investment End of Year 1 $ 8,400 3 8,400 8,400 $ 0 0 25,200 The present value factors of $1 each year at 15% are 1 0.8696 2 0.7561 3 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832. The net present value (rounded to the nearest whole dollar) of Investment A is Multiple Choice $16.569 $15,400) $9.800 $(19,180) Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,400 and will produce cash flows as follows: Investment End of Year A 1 $ 8,400 $ 0 2 8,400 0 3 8,400 25,200 The present value factors of $1 each year at 15% are: I 0.8696 2 0.7561 3 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832. The net present value (rounded to the nearest whole dollar) of Investment A is: Multiple Choice O O $16.569 505,400 $9.000 51100 $3.779
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