Jiminez Company Has Two Investment Opportunities What Is the Total Present Value of Investment A's Cash

question 157

Multiple Choice

Jiminez Company has two investment opportunities. Both investments cost $5,100 and will provide the following net cash flows: $\begin{array}{lcc}\text { Year }& \text { Investment A} & \text { Investment B} \\1 & \$ 3,050 & \$ 3,050 \\2 & 3,050 & 4,060 \\3 & 3,050 & 2,050 \\4 & 3,050 & 1,020\end{array}$ What is the total present value of Investment A's cash flows assuming an 10% minimum rate of return? (PV of $1and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round your answer to the nearest dollar.)

• A) $10,635.
• B) $4,568.
• C) $8,365.
• D) $3,050.

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Definitions:

Examine If Closed

A control logic instruction that checks whether a circuit or contact is closed (i.e., allowing current flow) before executing further actions.

Examine-On Instruction

In PLC programming, an Examine-On Instruction checks if a specified input or condition is true (e.g., if a switch is on) before executing subsequent instructions.

XIC Instruction

An "Examine if Closed" instruction in ladder logic programming, used to check if a contact is virtually closed in a control system.

Normally Open Relay

A type of electrical relay whose contacts are open in its resting state, closing to complete a circuit when activated.