you are evaluating two investments: the first investment requires %100,00 initial investment and promises $30,00 in year

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you are evaluating two investments:

the first investment requires %100,00 initial investment and promises $30,00 in year 1, $50,00 in year 2 and $40,00 in year 3.

The second investment requires $80,000 initial investment and promises $20,000 in year 1, $30,000 in year 2, $20,000 in year 3 and $30,000 in year 4.

If your cost of capital is 8%, which would you?

Related Book For answer-question

Financial Accounting

ISBN: 978-0134127620

11th edition

Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz

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Posted Date: Apr 20, 2024 04:03 AM

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you are evaluating two investments: the first investment requires %100,00 initial investment and promises $30,00 in year

Question:

Expert Answer:

ANSWER To evaluate which investment is better we can calculate the present value of the cash flows f... View the full answer

Financial Accounting

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