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Perez Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alter

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Answer #1

a. Net present value

Alternative 1 =180000-154000 =26000

Alternative 2 =355000-290000 =65000

b. PVI

Alternative 1 =180000/154000 =1.17

Alternative 2 =355000/290000 =1.22

c. Alternative 2

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