Suppose that you have $14,000 to invest and you are trying to decide between investing in project A or project B. If you invest in
project A, you will receive a payment of $17,000 at the end of 3 years. If you invest in project B, you will receive a payment of $56,000
at the end of 23 years. The annual interest rate is 6 percent and both projects carry no risk.
Instructions: Round your answers to the nearest dollar. Do not round your intermediate calculations.
a. What is the present value of each project? Enter your answers in the table below.
Present Value
Project A =
$
Project B =
$
b. Which project will you choose for your investment?
Project A
Project B