Thomas Inc.has two independent investment opportunities,each requiring an initial investment of $15,000.The company's hurdle rate is 14 percent.The cash inflows for each investment are provided below.
Without making any calculations,which investment will have the higher net present value?
A) Investment B because it generates most of the cash inflows early on.
B) Investment A because there is an increasing trend in cash inflows.
C) The net present values of Investment A and B are equal.
D) None of the answer choices is correct.
Correct Answer:
Verified
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