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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 B are mutually exclusive, and B and C are mutually exclusive.
a What is the net present value of investment Investment B Investment C Use Appendix B to answer the questions. Use a minus sign to enter negative values, if any. Round 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 with an internal rate of return 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 internal rate of return? Round your answer to the nearest whole number.
If the cost of capital rises to percent, the internal rate of return of investment
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