Annual cash flows from two competing investment opportunities are given. Each investment opportunity will require
the same initial investment.
Click the icon to view the competing investment opportunities.
Click the icon to view the Present Value of $ table.Click the icon to view the Present Value of Annuity
of $ table.
Requirement
Assuming a interest rate, which investment opportunity would you choose?
Begin by computing the present value of each investment opportunity. Assume that the annual cash flows occur at
the end of each year. If using present value tables, use factor amounts rounded to three decimal places,
XXXX
Round intermediary computations and your final answer to the nearest whole dollar.
The present value of investment opportunity is
The present value of investment opportunity is
Investment opportunity should be chosen because the present value of cash flows is
than the present
value of investment opportunity
