Labeau Products, Ltd., of Perth, Australia, has $23,000 to invest. The company is trying to decide between two alternative uses for the funds as follows:
|Annual cash inflows||$||7,000|
|Single cash inflow at the end of 6 years||$||43,000|
|Life of the project||6 years||6 years|
|The company’s discount rate is 16%.|
|a.||Determine the net present values.