Morrisey Company has two investment opportunities. Both investments cost $6800 and will provide the same total future cash inflows. The cash receipt schedule for each investment is given below: Investment I Investment IIPeriod 1 $1900? $1900? Period 2 1900? 3080? Period 3 2900? 4260? Period 4 5440? 2900? Total $12,140? $12,140? What is the net present value of Investment II assuming an 12% minimum rate of return? Use Appendix Table 1. (Do not round intermediate calculations. Round your answer to nearest whole dollar.)
A. $2227
B. $12,140
C. $9027
D. $(8732)
Answer: A
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