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Jiminez Company Has Two Investment Opportunities What Is the Total Present Value of Investment A's Cash

Question 20

Multiple Choice

Jiminez Company has two investment opportunities.Both investments cost $5,000 and will provide the following net cash flows:  Year  Investment A Investment B1$3,000$3,00023,0004,00033,0002,00043,0001,000\begin{array}{|l|r|r|}\hline \text { Year } & \text { Investment } \mathrm{A} & \text { Investment } \mathrm{B} \\\hline 1 & \$ 3,000 & \$ 3,000 \\\hline 2 & 3,000 & 4,000 \\\hline 3 & 3,000 & 2,000 \\\hline 4 & 3,000 & 1,000 \\\hline\end{array} What is the total present value of Investment A's cash flows assuming an 8% minimum rate of return? (Do not round your intermediate calculations.Round your answer to the nearest whole dollar. )


A) $14,936.
B) $4,936.
C) $7,000.
D) $12,000.

Correct Answer:

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