Question: Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all inves is considering two

Alfarsi Industries uses the net present value method to make investment decisions

Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all inves is considering two different investments. Each require an initial investment of $15,600 and will produce cash flows as follows: Investment End of Year 1 2 3 A $ 8,600 $ 0 8,600 8,600 25,800 The present value factors of $1 each year at 15% are 1 0.8696 2 0.7561 3 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment B is Multiple Choice C $1,364 CHE GES Next>

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