... 2002 2003 2004 20 05 $ 250 ,000 250 ,000 250 ,000 250 ,000 250 ,000 $238,0 95 226, 757 2 15, 959 2 05, 676 1 95, 882 $ 250 ,000 250 ,000 250 ,000 250 ,000 250 ,000 $227,273 206,612 187,829 170, 753 155 ,230 The discounted ... of A is $51 6,3 15: 412 LONG-TERM INVESTMENT DECISIONS NPV of A = $1 ,51 6,3 15 − $1,000,000 = $51 6,3 15 and the Net Present Value of B is $55 2,620: NPV of B = $1 ,55 2,620 − $1,000,000 = $55 2,620 These ... 8 .55 %: Year FV3 End of Year Cash Flow Future Value at End of Third Year, Using 8 .55 % +$3,000 +$3,000 +$6,000 $3,000 (1 + 0.0 855 )2 = $3 ,53 4.93 $3,000 (1 + 0.0 855 )1 = $3, 256 .50 $6,000 (1 + 0.0 855 )0...