What is the total present value of investment as cash flows


Question - Jiminez Company has two investment opportunities. Both investments cost $5,400 and will provide the following net cash flows:

Year Investment A Investment B

1 $3,700 $3,700

2 3,700 4,840

3 3,700 2,700

4 3,700 1,280

What is the total present value of Investment A's cash flows assuming an 8% minimum rate of return? (Do not round your intermediate calculations. Round your answer to the nearest whole dollar.)

a. $6,855.

b. $3,700.

c. $10,660.

d. $13,235.

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