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v Two alternatives have the following cash flows: Year Option A Option B -$1,500 -$2,700 0 1 +$600 +$1,000 2 +$600 +$1,000 3 +$1,000 +$600
v Two alternatives have the following cash flows: Year Option A Option B -$1,500 -$2,700 0 1 +$600 +$1,000 2 +$600 +$1,000 3 +$1,000 +$600 +$600 4 +$1,000 At a 6% interest rate, which alternative should be selected? You must show your work to receive ANY credit for this problem. (This question requires you to calculate the answer. Everyone in the class will receive a different combination of values. The answer is automatically rounded to the nearest dollar, but Canvas will automatically give you a margin of error in case of small rounding errors.) O B because the Net Present Worth of B is greater than Net Present Worth of A A because the Net Present Worth of Bis greater than Net Present Worth of B A because the Net Present Worth of B is negative A because the Net Present Worth of Ais greater than Net Present Worth of B OB because the Net Present Worth of Ais negative
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