For Investment A:
PV_A = $7,000 * (1 - (1 + 0.05)^(-5)) / 0.05
PV_A = $7,000 * (1 - 1.27628) / 0.05
PV_A = $7,000 * (-0.27628) / 0.05
PV_A = -$38,688
For Investment B:
PV_B = $5,500 * (1 - (1 + 0.05)^(-9)) / 0.05
PV_B = $5,500 * (1 - 1.55133) / 0.05
PV_B =
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