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Business, 24.04.2020 21:27 davelopez979

Morrisey Company has two investment opportunities. Both investments cost $5,500 and will provide the same total future cash inflows. The cash receipt schedule for each investment is given below:

inv 1 inv 2
period 1 $1000 $1000
period 2 1000 2000
period 3 2000 3000
period 4 4000 2000
total 8000 8000

The net present value of Investment II assuming an 8% minimum rate of return would be which of the following amounts? (Do not round your PV factors and intermediate calculations. Round your answer to nearest whole dollar.)

A. $6,492

B. $992

C. $5,880

D. $38
0

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