What is the net present value of the infinite life chain

Reference no: EM132181765

Question - You are considering one of two mutually exclusive investments and anticipate replacement. Investment A has a cost of $11,000, an annual after-tax benefit of 3,000, and a salvage value of 3,000. Investment B has a cost of $15,000, an annual benefit of 3,500, and a salvage value of 0. What is the net present value of the infinite life replacement chain of the better investment?

Reference no: EM132181765

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