The D Company must make a choice between two investment alternatives. Alternative 1 will return the.

The D Company must make a choice between two investment alternatives. Alternative 1 will return the company $20 000 at the end of three years and $60 000 at the end of six years. Alternative 2 will return the company $13 000 at the end of each of the next six years. The D Company normally expects to earn a rate of return of 12% on funds invested.

Compute the present value of each alternative and determine the preferred alternative according to the discounted cash flow criterion (round off to the nearest dollar).

The D Company must make a choice between two investment

 

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