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A firm has the following investment aitematives: Each investment costs $3,500; Investments B and C are mutually exclusive, and the firm's cost of capital is

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A firm has the following investment aitematives: Each investment costs $3,500; Investments B and C are mutually exclusive, and the firm's cost of capital is 9 pereent. Use Appendix A, Appendix B and Appendix D to answer the questions. Assume that the investments are not mutually exclusive and there are no budget restrictions. a. What is the net present value of each investment? Use a minus sign to enter a negative values, If any. Round your answers to the nearest dollar: A. 5 B: 5 C: $ b. According to the net present values, which investment(b) should the firm make? The firm should make investment(s) c. What is the internal rate of return on each investment? Round your answers to the nearest whole number. A: 8. C. d. According to the internal rates of return, which irvestment(s) should the firm make? The firm showild make investment(s) c. According to both the net present values and intemal rates of return, which investments should the firm make? The net present value and internal rate of return inad to 10 the firm should 1. If the firm could reievest the 14,060 eamed in year 1 from investment B at 10 percent, which investment(a) should the firm make? Round your answer to the nearest. dollar. Terminal yalue of investment 8:5 The firm should make investment(s) Would the answer be different if the rate nere 14 percent? Round your answer to the nearest dolian. Terminal value of ifvesment Dis 5

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