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A firm has the following investment alternatives: Cash Inflows Year A B C 1 $ 1,085 $ 3,193 2 1,085 1,085 3 $ 3,930 Each

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A firm has the following investment alternatives: Cash Inflows Year A B C 1 $ 1,085 $ 3,193 2 1,085 1,085 3 $ 3,930 Each investment costs $2,800; investments B and C are mutually exclusive, and the firm's cost of capital is 9 percent. 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. Each investment costs $2,800; investments B and Care mutually exclusive, and the firm's cost of capital is 9 percent. 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: $ B: $ C: $ b. According to the net present values, which investment(s) should the firm make? The firm should make investment(s) -Select- C. What is the internal rate of return on each investment? Round your answers to the nearest whole number. A: % B: % C: % d. According to the internal rates of return, which investment(s) should the firm make? The firm should make investment(s) -Select- e. According to both the net present values and internal rates of return, which investments should the firm make? The net present value and internal rate of return lead to -Select- v so the firm should -Select- f. If the firm could reinvest the $3,193 earned in year 1 from investment B at 10 percent, which investment(s) should the firm make? Round your answer to the nearest dollar. Terminal value of investment B: $ The firm should make investment(s) -Select- Would the answer be different if the rate were 12 percent? Round your answer to the nearest dollar. Terminal value of investment B: $ The firm should make investment(s) -Select- 9. If the firm's cost of capital had been 10 percent, what would be investment A's internal rate of return? Round your answer to the nearest whole number. % h. The payback method of capital budgeting selects which investment? The payback method of capital budgeting selects investment -Select

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