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 Investment Year B 1 $8.2005 2 8,eee 3 8,000 24,000 The present value factors of Steach year at 15% are 1 2 3 8.8696 0.7561 0.6575 The present value of an annuity of 1 for 3 years at 15% 2.2832 The net present value of investment Al The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment A is: Multiple Choice $18.266 $(15,000) $9,000 $(20,549) $3,266
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