13 16 Question 3 (10 Marks) B3.a An investment has a total installed cost of $16,061. The cash flows over a four- year life of the investment are projected to be $4,402, $6,036, $6,702 and $3,015. a. If the discount rate is zero, what is the NPV? b. If the discount rate is infinity, what is the NPV? What is the IRR on the investment? (5 Marks) B3. b Given the following cash flows, which of the two investments is better if we require a 6 per cent return? Year 0 1 2 3 Investment Investment A B -$2,000 -$2,500 $1,400 $1,020 $2,260 $880 $1,954 $3,850