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present value of $1:

present value of ordinary annuity of $1:

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 $1 table) 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 flow 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 $ and 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 X i Data Table Investment Year A B 1 1 $ 5,000 $ 12,000 2 3,000 28,000 12,000 12,000 3 $ 36,000 $ 36,000 Print Done Present Value of $1 7% 8% Periods 4% 5% 6% 10% 12% 14% 16% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 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 0.952 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 0.943 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 0.935 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 0.296 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 0.909 0.826 0.751 0.683 0.621 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 0.893 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 0.877 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 0.862 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 18 19 20 0.494 0.475 0.456 0.416 0.396 0.377 0.350 0.331 0.312 0.296 0.277 0.258 0.250 0.232 0.215 0.180 0.164 0.149 0.130 0.116 0.104 0.095 0.083 0.073 Present Value of Ordinary Annuity of $1 6% 7% 8% 10% Periods 4% 5% 12% 14% 16% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 0.962 1.886 2.775 3.630 4.452 5.242 6.002 6.733 7.435 8.111 8.760 9.385 9.986 10.563 11.118 11.652 12.166 12.659 0.952 1.859 2.723 3.546 4.329 5.076 5.786 6.463 7.108 7.722 8.306 8.863 9.394 9.899 10.380 10.838 11.274 11.690 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 6.802 7.360 7.887 8.384 8.853 9.295 9.712 10.106 10.477 10.828 0.935 1.808 2.624 3.387 4.100 4.767 5.389 5.971 6.515 7.024 7.499 7.943 8.358 8.745 9.108 9.447 9.763 10.059 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 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 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 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 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 AAAA 18 19 20 12.659 11.690 13.134 12.085 13.590 | 12.462 10.828 11.158 11.470 10.059 10.336 10.594 9.372 9.604 9.818 8.201 8.365 8.514 7.250 7.366 7.469 6.467 6.550 6.623 5.818 5.877 5.929

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