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what would this answer be ? Fargo Industries uses the Net Present Value method to make investment decisions and requires a 15% return on all
what would this answer be ?
Fargo Industries uses the Net Present Value method to make investment decisions and requires a 15% return on all investments. The company is considering two different investments. Each requires an initial investment of $15,000 and will produce cash flows as follows: Year Investment A Investment B $8,000 $ 0 1 $ 8,000 $ 0 2 $8,000 $24,000 3 Which of the following is NOT true concerning these investments? The payback period for Investment A is shorter than that for Investment B. Investment B carries higher risk than Investment A. The net present value of these investments is the same. The internal rate of return of Investment A exceeds that of Investment B. OOOOStep by Step Solution
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