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MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
......................
Labeau Products, Ltd., of Perth, Australia, has $23,000 to invest. The company is trying to decide between two alternative uses for the funds as follows:
 Â
 | Invest in Project X |
Invest in Project Y |
||
  Investment required | $ | 23,000   | $ | 23,000  |
  Annual cash inflows | $ | 7,000   |  |  |
  Single cash inflow at the end of 6 years |  |  | $ | 43,000  |
  Life of the project | 6 years  | 6 years  |
 Â
The company’s discount rate is 16%. |
 Â
 |
 Â
Required: |
a. |
Determine the net present values. Â .............. |
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