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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.) ($1 (Click the icon to view the Present Value of $1 table.) 3 (Click the icon to view the Present Value of Annuity of $1 table.) Requirement 1. Assuming a 12% 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, X.XXX. Round intermediary computations and your final answer to the nearest whole dollar.) The present value of investment opportunity A is $ and the present value of investment opportunity B is $ Present Value of $1 - X - X Present Value of Annuity of $1 i - X Data Table Present Value of $1 7% 8% Present Value of Ordinary Annuity of $1 6% 7% 10% Investment Periods 4% 5% 6% 10% 12% 14% 16% Periods 4% 5% 8% 12% 14% 16% Year A B 1 $ 11,000 2 14,000 $ 11,000 8,000 11,000 11,000 3 $ 33,000 $ 33.000 Print 1 2 3 4 5 6 7 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Done 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.534 0.513 0.494 0.475 0.456 0.952 0.907 0.864 0.823 0.784 0.746 0.711 0.677 0.645 0.614 0.585 0.557 0.530 0.505 0.481 0.458 0.436 0.416 0.396 0.377 0.935 0.873 0.816 0.763 0.713 0.666 0.623 0.582 0.544 0.508 0.475 0.444 0.415 0.388 0.362 0.339 0.317 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 0.527 0.497 0.469 0.442 0.417 0.394 0.371 0.350 0.331 0.312 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.368 0.340 0.315 0.292 0.270 0.250 0.232 0.215 0.909 0.826 0.751 0.683 0.62 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0.218 0.198 0.180 0.164 0.149 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.205 0.183 0.163 0.146 0.130 0.116 0.104 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 0.237 0.208 0.182 0.160 0.140 0.123 0.108 0.095 0.083 0.073 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0.108 0.093 0.080 0.069 0.060 0.051 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 0.962 0.952 0.943 0.935 1.886 1.859 1.833 1.808 2.775 2.723 2.673 2.624 3.630 3.546 3.465 3.387 4.452 4.329 4.212 4.100 5.242 5.076 4.917 4.767 6.002 5.786 5.582 5.389 6.733 6.463 6.210 5.971 7.435 7.108 6.802 6.515 8.111 7.722 7.360 7.024 8.760 8.306 7.887 7.499 9.385 8.863 8.384 7.943 9.986 9.394 8.853 8.358 10.563 9.899 9.295 8.745 11.118 10.380 9.712 9.108 11.652 10.838 10.106 9.447 12.166 11.274 10.477 9.763 12.659 11.690 10.828 10.059 13.134 12.085 11.158 10.336 13.590 12.462 11.470 10.594 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6.247 6.710 7.139 7.536 7.904 8.244 8.559 8.851 9.122 9.372 9.604 9.818 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6.814 7.103 7.367 7.606 7.824 8.022 8.201 8.365 8.514 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 5.938 6.194 6.424 6.628 6.811 6.974 7.120 7.250 7.366 7.469 0.877 1.647 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 5.453 5.660 5.842 6.002 6.142 6.265 6.373 6.467 6.550 6.623 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.607 4.833 5.029 5.197 5.342 5.468 5.575 5.668 5.749 5.818 5.877 5.929 IITTI 0.296 0.277 0.258 Enter any number in the edit fields and then click Check Answe
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