Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on al

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Alfarsi Industries Uses The Net Present Value Method To Make Investment Decisions And Requires A 15 Annual Return On Al 1 (25.59 KiB) Viewed 43 times

Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $14,000 and will produce cash flows as follows: End of Year 1 2 3 1 2 3 Investment $0 0 30,000 The present value factors of $1 each year at 15% are: 0.8696 0.7561 0.6575 A $ 10,000 10,000 10,000 B The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment B is: