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Tyler is considering two different investments. He only has enough money for one investment and he wants to maximize his earning potential on the investment
Tyler is considering two different investments. He only has enough money for one investment and he wants to maximize his earning potential on the investment he chooses. He has received bids from two different companies that produce and install solar panels.
- Super Solar, Inc. quoted an installed price of $160,000 with expected cash inflows of $50,000 in year 1, $71,000 in year 2, and $121,000 in year 3.
- Sunset Solar, Inc. quoted an installed price of $240,000 with expected cash inflows of $120,000 in year 1, $100,000 in year 2, and $80,000 in year 3.
You are Tyler's accountant, and he has asked for your advice on which system he should choose. Please give your advice along with the reasons for the advice you gave.
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