Annual cash inflows that will arise from two competing investment projects are given below: Year
Investment A Investment B
1 $5,000 $8,000
2 6,000 7,000
3 7,000 6,000
4 8,000 5,000
Total $26,000 $26,000
Required:
Compute the present value of the cash inflows for each investment.
The discount rate is 13%.
Answers: 1
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