Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $14,600 and will produce cash flows as follows: End of YearInvestment AB 1$9,400 $0 2 9,400 0 3 9,400 28,200 The present value factors of $1 each year at 15% are: 10.8696 20.7561 30.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment B is:
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