Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follow End of Year 1 2 3 4 5 6 7 8 A $13,000 13,000 13,000 13,000 13,000 Investment B $13,000 13,000 13,000 13,000 C $18,000 54,000 a. What is the present value of investment A at an annual discount rate of 22 percent? $37227.32 (Round to the nearest cent.) b. What is the present value of investment B at an annual discount rate of 22 percent? (Round to the nearest çent.)

Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follow End of Year 1 2 3 4 5 6 7 8 A $13,000 13,000 13,000 13,000 13,000 Investment B $13,000 13,000 13,000 13,000 C $18,000 54,000 a. What is the present value of investment A at an annual discount rate of 22 percent? $37227.32 (Round to the nearest cent.) b. What is the present value of investment B at an annual discount rate of 22 percent? (Round to the nearest çent.)

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 3SEQ: The expected period of time that will elapse between the date of a capital investment and...

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