314 Financial Management: Theory and Practice 2. The cash flow streamis for four alternative investments, A, B, C and D, are: C D (200,000) (300,GO0) (210,000) (320,000) 40,000 40,000 80,000 2,00,000 40,000 40,000 60,000 20,000 40,000 40,000 80,000 40,000 40,000 60,000 40,000 40,000 80,000 40,000 30,000 60,000 40,000 30,000 40,000 40,000 20,000 40,000 40,000 20,000 40,000 40,000 200,000 20,000 40,000 50,000 Calculate the payback period, net present value, internal rate of return, and benefit cost ratio for the four alternatives. Which would you choose? Why? 3. What is the internal rate of return of an investment which involves a current outlay of Rs 300,000 and results in an annual cash inflow of Rs 60,000 for 7 years? 4. What is the internal rate of return of the following cash flow stream