Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B $ 6,000 7,000 8,000 9,000 $9,000 8,000 7,000 6,000 Total $30,000 $30,000 The discount rate is 11%. Use Excel or a financial calculator to solve the homework. Round answers to the nearest dollar. Required: Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment. Present Value of Cash Flows Investment Investment A B -234
Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B $ 6,000 7,000 8,000 9,000 $9,000 8,000 7,000 6,000 Total $30,000 $30,000 The discount rate is 11%. Use Excel or a financial calculator to solve the homework. Round answers to the nearest dollar. Required: Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment. Present Value of Cash Flows Investment Investment A B -234
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
Transcribed Image Text:Annual cash inflows that will arise from two competing investment projects are given below:
Year
Investment A Investment B
$ 6,000
7,000
8,000
9,000
$9,000
8,000
7,000
6,000
Total
$30,000
$30,000
The discount rate is 11%.
Use Excel or a financial calculator to solve the homework. Round answers to the nearest dollar.
Required:
Compute the present value of the cash inflows for each investment. Each investment opportunity will
require the same initial investment.
Present Value of Cash Flows
Investment
Investment
A
B
-234
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