Alfarsi Industries Uses The Net Present Value Method To Make Investment Decisions And Requires A 15 Annual Return On Al 1 (14.79 KiB) Viewed 54 times
Alfarsi Industries Uses The Net Present Value Method To Make Investment Decisions And Requires A 15 Annual Return On Al 2 (12.55 KiB) Viewed 54 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 $15,400 and will produce cash flows as follows: End of Year 1 2 3 1 $0 0 25,200 The present value factors of $1 each year at 15% are: 2 3 Investment 0.8696 0.7561 0.6575 A $ 8,400 8,400 8,400 The present value of an annuity of $1 for 3 years at 15% is 2.2832. The net present value (rounded to the nearest whole dollar) of investment A is:
The present value of an annuity of $1 for 3 years at 15% is 2.2832. The net present value (rounded to the nearest whole dollar) of Investment A is: Multiple Choice $16,569 $(15,400) $9,800. $(19,180) $3.779 0
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