3 00:40:48 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 $14,800 and will produce cash flows as follows: End of Year 1 2 1 2 3 $0 0 27,600 The present value factors of $1 each year at 15% are: 3 Investment 0.8696 0.7561 0.6575 A $ 9,200 9,200 9,200 B The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment B is:

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 $14,800 and will produce cash flows as follows: The present value factors of $1 each year at 15% are: The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Imvestment B is