Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,000 and will produce cash flows as follows: The present value factors of $1 each year at 15% are:
The present value of an annuity of $1 for 3 years at 15% is 2.2832.
The net present value of Investment A is:
A) $18,266.
B) $(15,000).
C) $9,000.
D) $(20,549).
E) $3,266.

Question

Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,000 and will produce cash flows as follows:  The present value factors of $1 each year at 15% are:
 The present value of an annuity of $1 for 3 years at 15% is 2.2832.
The net present value of Investment A is:
A) $18,266. 
B) $(15,000). 
C) $9,000. 
D) $(20,549). 
E) $3,266.

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Alfarsi Industries Uses the Net Present Value Method to Make