Jiminez Company has two investment opportunities. Both investments cost $5,000 and will provide the following net cash flows: Year Investment A investemen B 1 3,000 3,000 2 3,000 4,000 3 3,000 2,000 4 3,000 1,000 What is the total present value of Investment A's cash flows assuming an 8% minimum rate of return? (Do not round your intermediate calculations. Round your answer to the nearest whole dollar.) A) $14,936. B) $4,936. C) $7,000. D) $12,000.
Jiminez Company has two investment opportunities. Both investments cost $5,000 and will provide the following net cash flows: Year Investment A investemen B 1 3,000 3,000 2 3,000 4,000 3 3,000 2,000 4 3,000 1,000 What is the total present value of Investment A's cash flows assuming an 8% minimum rate of return? (Do not round your intermediate calculations. Round your answer to the nearest whole dollar.) A) $14,936. B) $4,936. C) $7,000. D) $12,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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Jiminez Company has two investment opportunities. Both investments cost $5,000 and will provide the following net |
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Investment A |
investemen B |
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1 |
3,000 |
3,000 |
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2 |
3,000 |
4,000 |
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3 |
3,000 |
2,000 |
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4 |
3,000 |
1,000 |
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What is the total present value of Investment A's cash flows assuming an 8% minimum |
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A) $14,936. |
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B) $4,936. |
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C) $7,000. |
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D) $12,000. |
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