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Exam 4 i
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points
3
Suppose that you have $14,000 to invest and you are trying to decide between investing in project A or project B. If you invest in
project A, you will receive a payment of $17,000 at the end of 3 years. If you invest in project B, you will receive a payment of $56,000
at the end of 23 years. The annual interest rate is 6 percent and both projects carry no risk.
Instructions: Round your answers to the nearest dollar. Do not round your intermediate calculations.
a. What is the present value of each project? Enter your answers in the table below.
01:29:19
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Project A =
Project B =
Present Value
$
$
b. Which project will you choose for your investment?
O Project A
O Project B
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