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Business, 06.08.2021 17:40 wrivera32802

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
Which investment should alfarsi choose?
A. Both investments are acceptable, but A should be selected because it has the greater net present value.
B. Only investment b is acceptable.
C. Both investments are acceptable, but b should be selected because it has the greater net present value.
D. Neither machine is acceptable.

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