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

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 $15,100 and will produce cash flows as follows: End of Year 1 Investment A B $ 8,100 8, 100 8,100 24,300 2 3 The present value factors of $1 each year at 15% are: 1 2 3 0.8696 0.7561 0.6575 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

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