Annual cash inflows that will arise from two competing investment projects are given below: ...
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Accounting
Annual cash inflows that will arise from two competing investment projects are given below:
Year
Investment A
Investment B
1
$ 4,000
$7,000
2
5,000
6,000
3
6,000
5,000
4
7,000
4,000
Total
$22,000
$22,000
The discount rate is 10%.
Required:
Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment. (Use Microsoft Excel to calculate present values. Do not round intermediate calculations.)
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