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Best Ball Inc. has the following investment opportunities: 1. Machine A requires an initial investment of $10,000 and is proj
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Answer #1

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=4000/1.14+6000/1.14^2+4000/1.14^3

=10825.4632

PI=Present value of inflows/Present value of outflows

=10825.4632/10,000

=1.08(Approx)

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