Question: Back to Assignment Attempts Average / 4 8. Problem 7-08 eBOOK Problem 7-08 A company has two investment possibilities, with the following cash inflows: Investment

Back to Assignment Attempts Average / 4 8. Problem 7-08 eBOOK

Back to Assignment Attempts Average / 4 8. Problem 7-08 eBOOK Problem 7-08 A company has two investment possibilities, with the following cash inflows: Investment Year 1 Year 2 Year e A $1,500 1,900 2 200 B $1,300 1,300 1.300 If the firm can earn 6 percent in other investments, what is the present value of investments A and B? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar. PV (Investment A): $ PV (Investment B): $ If each investment costs $4,000, is the present value of each investment greater than the cost of the investment? The present value of investment A is -Select- the cost. The present value of investment B is | -Select- the cost

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