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iminez Company has two investment opportunities. Both investments cost $5,800 and will provide the following net cash flows: Year 1 2 3 Investment A Investment B $3,900 $3,900 3,900 5,080 3,900 2,900 3,900 1,360 What is the total present value of Investment A's cash flows assuming an 12% minimum rate of return? (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round your answer to the nearest dollar.

iminez Company has two investment opportunities. Both investments cost $5,800 and will provide the following net cash flows: Year 1 2 3 Investment A Investment B $3,900 $3,900 3,900 5,080 3,900 2,900 3,900 1,360 What is the total present value of Investment A's cash flows assuming an 12% minimum rate of return? (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round your answer to the nearest dollar.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Jiminez Company has two investment opportunities. Both investments cost $5,800 and will provide the following net cash flows: Year Investment A Investment B 1 $3,900 $3,900 2 3,900 5,080 3 3,900 2,900 3,900 1,360 What is the total present value of Investment A's cash flows assuming an 12% minimum rate of return? (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round your answer to the nearest dollar. Multiple Choice $10.460 $3,900 J
Transcribed Image Text:Jiminez Company has two investment opportunities. Both investments cost $5,800 and will provide the following net cash flows: Year Investment A Investment B 1 $3,900 $3,900 2 3,900 5,080 3 3,900 2,900 3,900 1,360 What is the total present value of Investment A's cash flows assuming an 12% minimum rate of return? (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round your answer to the nearest dollar. Multiple Choice $10.460 $3,900 J
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