Explain what is the present value of each investment, Operation Management

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You must choose between two passive investments. Investment A requires an initial investment of $50,000 but will return $71,000 in three years. Investment B requires an initial investment of $45,000 but will return $60,000 in two years. You choose a discount rate of 10% to make your decision. Q-3a: What is the present value of each investment?


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