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TB MC Qu. 24-111 Alfarsi Industries uses the net present value... Alfarsi Industries uses the net present value method to make investment decisions and requires

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TB MC Qu. 24-111 Alfarsi Industries uses the net present value... 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 $14,500 and will produce cash flows as follows: End of Year 1 2 3 Investment A B $9,500 9,500 9,500 28,500 The present value factors of $1 each year at 15% are: 1 2 0.8696 0.7561 0.6575 3 Nord

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