You are given three investment alternatives to analyze. The cash flows from these three investments are...

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Finance

You are given three investment alternatives to analyze. The cashflows from these three investments are as follows:

End of Year   A   B   C
1   $1,000   $3,000   $5,000
2   2,000   3,000   5,000
3   3,000   3,000   (5,000)
4   -4,000   3,000   (5,000)
5   4,000   6,000   15,000

What is the present value of each of these three investments ifthe appropriate discount rate is 15 percent?

Answer & Explanation Solved by verified expert
4.3 Ratings (920 Votes)
Project ANet present value is solved using a financial calculator Thesteps to solve on the financial calculatorPress the CF buttonCF0 0Cash flow for all the years should be enteredPress Enter and down arrow after inputting each cash flowAfter entering the last cash flow press the    See Answer
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You are given three investment alternatives to analyze. The cashflows from these three investments are as follows:End of Year   A   B   C1   $1,000   $3,000   $5,0002   2,000   3,000   5,0003   3,000   3,000   (5,000)4   -4,000   3,000   (5,000)5   4,000   6,000   15,000What is the present value of each of these three investments ifthe appropriate discount rate is 15 percent?

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