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 $15,600 and will produce cash flows as follows: End of Year 1 2 3 1 2 3 Investment 0.8696 0.7561 0.6575 A $ 8,600 8,600 8,600 $0 0 25,800 The present value factors of $1 each year at 15% are: B The present value of an annuity of $1 for 3 years at 15% is 2.2832. The net present value (rounded to the nearest whole dollar) of Investment A 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 $15,600 and will produce cash flows as follows: The present value factors of $1 each year at 15% are: The present value of an onnuity of $1 for 3 years at 15% is 2.2832 . The net present value (rounded to the nearest whole dollar) of investment A is

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