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A firm has the following investment alternatives. Each one lasts a year. table [ [ Investment , A , B , C ] ,
A firm has the following investment alternatives. Each one lasts a year.
tableInvestmentABCCash inflow,$Cash outflow,$
The firm's cost of capital is percent. A and are mutually exclusive, and and are mutually exclusive.
a What is the NPV of investment A Investment B Investment C Use Appendix B to answer the questions. Use a minus sign to enter negative va your answers to the nearest cent.
A: $
B: $
C $
b What is the internal rate on investment A Investment B Investment C Round your answers to the nearest whole number.
A:
B:
C:
c Which investments should the firm make?
The firm should make investments
d If the firm had unlimited sources of funds, which investments should it make?
The firm should make investments
e If there were another alternative, investment D with an IRR of percent, which investments should the firm make?
The firm should make investments
f If the firm's cost of capital rose to percent, what effect would that have on investment As IRR? Round your answer to the nearest whole numl If the cost of capital rises to percent, the IRR of investment
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