Calculate the present value of the stream of services

Reference no: EM131072204

The following table describes the income stream for different capital investments. The income flows accrue at the end of years 1 through 4. The interest rate is given in the first column, and the cost in the final column.

(a) For each investment calculate the present value of the stream of services.

(b) Decide upon whether the investment should be undertaken or not

Reference no: EM131072204

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