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Nadya [2.5K]
3 years ago
6

Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all invest

ments. The company is considering two different investments. Each require an initial investment of $15,000 and will produce cash flows as follows: End of Year Investment A B 1 $ 8,000 $ 0 2 8,000 0 3 8,000 24,000 The present value factors of $1 each year at 15% are: 1 0.8696 2 0.7561 3 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832. The net present value of Investment A is: Multiple Choice $18,266. $(15,000). $9,000. $(20,549). $3,266.
Business
1 answer:
Mnenie [13.5K]3 years ago
3 0

Answer:

Give me a sec. Imma solve it out.

Explanation:

Gotta give me a sec. Imma solve it out. I'll be back to solve it for you

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