14. Lassiter Industries has annual sales of $220,000 with 10,000 shares of stock outstanding. The firm has a profit margin of 7.
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Explanation:
Since the cash flows are given in the question for the Investment A and the Investment B
So, the present value could be find out by multiplying the each year cash inflows with its discounted factor i.e 9%
So that the present value could come
The discount factor should be computed by
= 1 ÷ (1 + rate) ^ years
The attachment is shown below:
