8. It is 3 parts to the same question a b and c
The correct timeline is D.
Since all inflows
b.Present value = 28,000*PVF(11%, 1 year)+ 25,000*PVF(11%, 2 years) + 10,000*PVF(11%, 3-9 years) + 20,000*PVF(11%, 10 years)
= 28,000*0.901 + 25,000*0.812 + 10,000*3.825 + 20,000*0.352
= $90,818
C. Should accept offer 1 since present value is higher
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