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    Rate of return

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    A Co. has two investments opportunities. Both investments cost $5,000 and will provide the following net cash flows.

    Year Investment A Investment B
    1 $3,000 $3,000
    2 3,000 4,000
    3 3,000 2,000
    4 3,000 1,000
    The total present value in investment A's cash inflow's assuming 10% minimum rate of return is (rounded to the nearest whole dollar):
    a) $10,628 b) $9,510 c) $3,452 d) $3,000

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    https://brainmass.com/business/modified-internal-rate-of-return/determining-rate-return-example-problem-182836

    Solution Summary

    Solution describes how to calculate net present value.

    $2.19

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