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Costco is deciding between two potential investments. Each as an initial cost of 10,000 today,ans will...

Costco is deciding between two potential investments. Each as an initial cost of 10,000 today,ans will produce the cash flow and only cash flows- listed below. 9 assume the cash flows occur at the end of the year). assuming a 10% return is required on investments, compute the net present value of the two options and indicate which investment if any should be made.

cash flow produce by each investment

year Drops Hots

1 $5,000 $8000

2 $6,000 $7,000

3 $7,000 $6,000

4 $8,000 $5,000

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jeff jeffy answered 1 month ago
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