Question: 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

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 $14,700 and will produce cash flows as follows: End of Year 1 Investment A B $9,300 $ 0 9,300 0 9,300 27,900 2 3 The present value factors of $1 each year at 15% are: 1 2 0.8696 0.7561 0.6575 3 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment B is: (Round intermediate answer to the nearest whole dollar.)
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