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(Solved): A company has two investment possibilities, with the following cash inflows: InvestmentYear 1Year 2 ...



A company has two investment possibilities, with the following cash inflows: InvestmentYear 1Year 2Year 3A$1,4001,6001,900B$1,3001,3001,300 If the firm can earn 6 percent in other investments, what is the present value of investments A and B? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar. PV(Investment A): $ PV(Investment B): $ If each investment costs $4,000, is the present value of each investment greater than the cost of the investment? The present value of investment A is -Select-less than greater than Item 3 the cost. The present value of investment B is -Select-less than greater than Item 4 the cost.



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