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 $14,900 and will produce cash flows as follows:

End of Year	Investment
	A	B
1	$ 9,100	$ 0
2	9,100	0
3	9,100	27,300

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

• $3,050.

• $(17,950).

• $12,400.

• $45,250.

• $-8,153.