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

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 investments. The company is considering two different invester Each me an $15,800 and will produce cash flows as follows: Investment End of Year 8 1 2 $ 8,800 $ 0 8,800 3 8,880 26,400 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 Mumpie Choice $1558

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