Alfarsi Industries Uses The Net Present Value Method To Make Investment Decisions And Requires A 15 Annual Return On Al 1 (19.09 KiB) Viewed 11 times
Alfarsi Industries Uses The Net Present Value Method To Make Investment Decisions And Requires A 15 Annual Return On Al 2 (12.33 KiB) Viewed 11 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 $15,100 and will produce cash flows as follows: End of Year 1 2 1 3 2 3 Investment A $8,1007 $ 8,100 8,100 The present value factors of $1 each year at 15% are: 0.8696 0.7561 0.6575 B Multiple Choice 0 24,300 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment A is:
The net present value of Investment A is: Multiple Choice $15,977 $(15,100) $9,200 $(18,495) $3,394 15
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