1. Which investment option has the highest NPV? (Hint: calculation is not necessary to answer this question)

2. Which of the following investment options has the lowest IRR? (Hint: calculation is not necessary to answer this question)

Cash Flow Year Description Year 0 (today) Buy Stock Year 1 Dividends Year 2 Dividends Year 3 Dividends Year 4 Dividends Year 5 Sell Stock Investment Investment Investment Investment Cost of Capital 1 2 3 4 5% (30,000) (30,000) (30,000) (30,000) 6,000 2,000 2,000 2,000 2,000 2,000 2,000 30,000 32,000 32,000 32,000