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 $15,000 and will produce cash flows as follows: End of Year 1 2 3 Investment A B $8,eee $ 0 8, eee @ 8,000 24,000 The present value factors of $1 each year at 15% are: 1 WN 0.8696 0.7561 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 Which investment should Alfarsi choose? Acuvate Window
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