Recompute the net present values using (a) a cost of money of 0.20 and (b) a cost of money of 0.05 for each of the investments in Problem 8.

Data from Problem 8

Compute the net present value (use a cost of money of 0.15) and the internal rate of return for each of the following investments:

Transcribed Image Text:

Investment A B C 0 $(1,000) (1,000) (1,000) Period 1 $ 615 1,150 2 $1,322 615