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Exhibit 8-2 Liam Company has two independent investment opportunities, each requiring an initial investment of S130,000. The company's required rate of return is 12 percent.

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Exhibit 8-2 Liam Company has two independent investment opportunities, each requiring an initial investment of S130,000. The company's required rate of return is 12 percent. The cash inflows for each investment are provided below. Investment A Investment B Year 1 $70,000 $ 10,000 Year 2 50,000 30,000 Year 3 30,000 50,000 Year 4 10.000 70.000 Total inflows S160,000 $160,000 Factors: Present Value of S1 Factors: Present Value of an Annuity (r-12%) (r 129) Year 0 1.0000 Year 1 0.8929 Year! 0.8929 0.7972 Year 2 Year 2 1.6901 Factors: Present Value of $1 Factors: Present Value of an Annuity (r=12%) (r=12%) Year 0 1.0000 Year 1 0.8929 Year 1 0.8929 Year 2 0.7972 Year 2 1.6901 Year 3 0.7118 Year 3 2.4018 Year 4 0.6355 Year 4 3.0373 Refer to Exhibit 8-2. What is the net present value of Investment A (rounded to the nearest dollar)? O 872 O $15,600 O $30,000 O S361.680 None of the answer choices is correct

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