A firm can annually earn $1,000 in investment A for three years and $1,080 in...
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A firm can annually earn $1,000 in investment A for three years and $1,080 in investment B for three years. Both investments cost $2,500. Management uses 10 percent to discount cash flows; however, B is the riskier alternative, so management decides to use 16 percent. Based on this information, which investment is the better alternative
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