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problem: 2 investment opportunities are open to you: Investment one & Investment two.  Each has an initial cost of 10,000 dollars.  Suppose that you desire a ten percent return on your initial investment, find out the net present value of the two alternatives and evaluate their relative attractiveness:

Investment 1

Investment 2

CasFlows

Year

Cash Flows

Year

$5,000

1

$8,000

1

6,000

2

7,000

2

7,000

3

6,000

3

8,000

4

5,000

4

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916301

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