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Business, 12.08.2019 23:20 anggar20

Alfarsi industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. the company is considering two different investments. each require an initial investment of $15,000 and will produce cash flows as follows: end of year investment a b 1 $ 8,000 $ 0 2 8,000 0 3 8,000 24,000 the present value factors of $1 each year at 15% are: 1 0.8696 2 0.7561 3 0.6575 the present value of an annuity of $1 for 3 years at 15% is 2.2832 which investment should alfarsi choose?

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