Compute the net present value of the two alternatives

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Reference no: EM131339023

Two investment opportunities are open to you: Investment 1 and Investment 2. Each has an initial cost of $10,000.

Assuming that you desire a 10 percent return on your initial investment, compute the net present value of the two alternatives and evaluate their relative attractiveness:

Investment 1		Investment 2
Cash Flows	Year	Cash Flows	Year
$5,000	1	$8,000	1
6,000	2	7,000	2
7,000	3	6,000	3
8,000	4	5,000	4

Reference no: EM131339023

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