Which investment will have the higher net present value


Problem: Venture Company has two independent investment opportunities, each requiring an initial outflow of $35,000. The cash inflows for each investment are provided below. Investment A Investment B Year 1 $ 50,000 $ 40,000 Year 2 40,000 40,000 Year 3 40,000 40,000 Year 4 30,000 40,000 Total inflows $160,000 $160,000 Without making any calculations, which investment will have the higher net present value? Group of answer choices Investment A. Investment B. Both investments have the same net present value. This cannot be determined with the information provided. None of the answer choices is correct.

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Accounting Basics: Which investment will have the higher net present value
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