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Business, 19.05.2021 18:00 tmrsavage02p7cj16

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 $15,700 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:

a. 1
b. 0.8696
c. 2
d. 0.7561
e. 0.6575

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Answers: 1

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