Question: Annual cash inflows from two competing investment opportunities are given below. Each investment opportunity will require the same initial investment. Investment XInvestment Y Year 1
Annual cash inflows from two competing investment opportunities are given below. Each investment opportunity will require the same initial investment. Investment XInvestment Y Year 1 $ 8,000 $ 11,000 Year 2 9,000 10,000 Year 3 10,000 9,000 Year 4 11,000 8,000 Total $38,000 $38,000 Required: Compute the present value of the cash inflows for each investment using a 7% discount rate. (Round final answers to the nearest dollar amount.) Present Value of Cash Flows $ $ 28,706 Investment X Investment y
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