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Two investment opportunities are open to you: Investment 1 and Investment 2. Each has an initial cost of $14,000. Assuming that you desire a 6
Two investment opportunities are open to you: Investment 1 and Investment 2. Each has an initial cost of $14,000. Assuming that you desire a 6 percent return on your initial investment, compute the net present value of the two alternatives. Use Table II or a financial calculator to answer the question. Round your answers to the nearest dollar. Investment 1 Investment 2 Cash Flows Year Cash Flows Year $6,000 $9,000 $7,000 2 $8,000 2 $8,000 $7,000 $9,000 $6,000 4 Investment 1: $ 1 1 3 3 4 Investment 2: $ Which alternative is more attractive? -Select
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