Exer$$ise $12$A$-1($Algo$)$ Basic Present Value Concepts $[$L$012-7]$

Annual cash inflows that will arise from two competing investment projects are given below:

The discount rate is $8\%.$

Click here to view Exhibit $12$B$-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

Compute the present value of the cash inflows for each investment.Exercise $12$A$-1($Algo$)$ Basic Present Value Concepts $[$LO$12-7]$

Annual cash inflows that will arise from two competing investment projects are given below:

Year Investment A Investment B

$1$ $ $3,000$ $ $6,000$

$24,0005,000$

$35,0004,000$

$46,0003,000$

$ $18,000$ $ $18,000$

The discount rate is $8\%.$

Click here to view Exhibit $12$B$-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

Compute the present value of the cash inflows for each investment.