3 (or fi volue 2.00 points Exercise 11A-1 Basic Present Value Concepts [L011-5]

Question

3 (or fi volue 2.00 points Exercise 11A-1 Basic Present Value Concepts [L011-5] Annual cash inflows that will arise from two competing investment projects are given below $ 1,000 2,000 3,000 4,000 $4,000 3,000 2,000 1,000 Total$10,000 $10,000 The discount rate is 9%. Click here to view Exhibit 118-1 and Exhibit 118-2 to determine the appropriate discount factoris) using tables Required: Compute the present value of the cash inflows for each investment Each investment require the same initial investment (Use the appropriate table to determine the discount factorts).) opportunity will Amount of Cash Flows Present Value of Cash Flows Investment Investment Investment Investment 9% Factor References onk & Resnurces ype here to search ?

Explanation / Answer

Amount of Cash Flow Present value of Cash Flow Year Investment A Investment B 9% Factor Investment A Investment B 1 1000 4000 0.9174 917.43 3,669.72 2 2000 3000 0.8417 1,683.36 2,525.04 3 3000 2000 0.7722 2,316.55 1,544.37 4 4000 1000 0.7084 2,833.70 708.43 Total 7,751.04 8,447.56

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.