Jiminez Company has two investment opportunities. Both investments cost $5,000 and will provide the following net cash flows: Year Investment A investemen B 1 3,000 3,000 2 3,000 4,000 3 3,000 2,000 4 3,000 1,000 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.

Jiminez Company has two investment opportunities. Both investments cost $5,000 and will provide the following net cash flows: Year Investment A investemen B 1 3,000 3,000 2 3,000 4,000 3 3,000 2,000 4 3,000 1,000 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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 4EA: Assume a company is going to make an investment of $450,000 in a machine and the following are the...

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Jiminez Company has two investment opportunities. Both investments cost $5,000 and will provide the following net cash flows:
	Year	Investment A	investemen B
	1	3,000	3,000
	2	3,000	4,000
	3	3,000	2,000
	4	3,000	1,000



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.