Compute the present value of the cash inflows

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Reference no: EM132510747

Annual cash inflows that will arise from two competing investment projects are given below:

Year  Investment A Investment B

1         $ 4,000         $7,000

                 5,000             6,000

                    6,000          5,000

                        7,000             4,000

Total                $22,000          $22,000

  • The discount rate is 10%.
  • Use Excel or a financial calculator to solve the homework. Round answers to the nearest dollar.

Required:

Question 1: Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment.

Reference no: EM132510747

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