Annual cash inflows that will arise from two competing investment projects are given below: ...
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Annual cash inflows that will arise from two competing investment projects are given below:
Year Investment A Investment B 1 $ 5,000 $ 8,000 2 6,000 7,000 3 7,000 6,000 4 8,000 5,000 $ 26,000 $ 26,000
The discount rate is 13%.
Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables.
Required:
Compute the present value of the cash inflows for each investment.
Present Value of Cash Flows Year Investment A Investment B 1 2 3 4 $0 $0
Annual cash inflows that will arise from two competing investment projects are given below:
| Year | Investment A | Investment B |
|---|---|---|
| 1 | $ 5,000 | $ 8,000 |
| 2 | 6,000 | 7,000 |
| 3 | 7,000 | 6,000 |
| 4 | 8,000 | 5,000 |
| $ 26,000 | $ 26,000 |
The discount rate is 13%.
Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables.
Required:
Compute the present value of the cash inflows for each investment.
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