Garrison Company has two investment opportunities. A cash flow schedule for the investments is provided below: Considering the unequal investments, which of the following techniques would be most appropriate for choosing between Investment A and Investment B?
$$\begin{array} { | l | c | c | }
\hline \text { Year } & \text { Investment } \mathrm { A } & \text { Investment B } \
\hline 0 & ( \$ 5,000 ) & ( \$ 6,000 ) \
\hline 1 & 2,000 & 3,000 \
\hline 2 & 2,000 & 2,000 \
\hline 3 & 2,000 & 2,000 \
\hline 4 & 2,000 & 1,000 \
\hline
\end{array}$$

Question

Garrison Company has two investment opportunities. A cash flow schedule for the investments is provided below: Considering the unequal investments, which of the following techniques would be most appropriate for choosing between Investment A and Investment B?
$$\begin{array} { | l | c | c | } 
\hline \text { Year } & \text { Investment } \mathrm { A } & \text { Investment B } \
\hline 0 & ( \$ 5,000 ) & ( \$ 6,000 ) \
\hline 1 & 2,000 & 3,000 \
\hline 2 & 2,000 & 2,000 \
\hline 3 & 2,000 & 2,000 \
\hline 4 & 2,000 & 1,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Garrison Company has two investment opportunities. A cash flow schedule for the investments is provided below: Considering the unequal investments, which of the following techniques would be most appropriate for choosing between Investment A and Investment B?
$$\begin{array} { | l | c | c | } 
\hline \text { Year } & \text { Investment } \mathrm { A } & \text { Investment B } \
\hline 0 & ( \$ 5,000 ) & ( \$ 6,000 ) \
\hline 1 & 2,000 & 3,000 \
\hline 2 & 2,000 & 2,000 \
\hline 3 & 2,000 & 2,000 \
\hline 4 & 2,000 & 1,000 \
\hline
\end{array}$$

Garrison Company Has Two Investment Opportunities A)Payback Technique B)Present Value Index C)Net Present Value Technique D)None

Garrison Company Has Two Investment Opportunities A)Payback Technique
B)Present Value Index
C)Net Present Value Technique
D)None