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You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Annual cash inflows that will arise from

You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:

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


YearInvestment AInvestment B
1$3,000$12,000
26,0009,000
39,0006,000
412,0003,000
Total$30,000$30,000

The discount rate is 18%.

Required:

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


What is the present value of each of these three investments if the appropriate discount rate is

15 percent? Question content area bottom Part 1

a.  What is the present value of investment A at an annual discount rate of 15 percent?

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