CIMA Fundamentals of Business Economics BA1 Question # 92 Topic 10 Discussion

CIMA Fundamentals of Business Economics BA1 Question # 92 Topic 10 Discussion

BA1 Exam Topic 10 Question 92 Discussion:
Question #: 92
Topic #: 10

A hairdressing salon can either invest in

1. New. more comfortable chairs at a cost of $5,000

2. New shop windows at a cost of $4,000

Over the next five years. Investment 1 will generate an additional amount of profit whose present value is $6,000. while Investment 2 additional amount of profit whose present value is $5,500

What is the net present value of the best project? Give your answer to the nearest whole dollar.


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