Question: Allarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering

 Allarsi Industries uses the net present value method to make investment

Allarsi 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 1 2 0 $8.000 8.000 3,000 24,000 Cick here to view Exhibit 3-1 and Exh 2. to determine the appropriate discount factor using table Which investment should Alfarsi choose Both investments are acceptable, but A should be selected because it has the greater net presente O Only investment is acceptable Only Investment A is acceptable Both investments are acceptable, but should be selected because it has the greater net present value

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