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A firm has two $1,000, mutually exclusive investment alternatives with the following cash inflows. The cost of capital is 6 percent. Year Cash Inflow B

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A firm has two $1,000, mutually exclusive investment alternatives with the following cash inflows. The cost of capital is 6 percent. Year Cash Inflow B 1 $1,100 2 $175 175 175 175 3 0 4 0 5 175 0 6 175 0 7 175 0 8 175 0 What is the internal rate of return on each investment? IRR for investment A is 8.15 and IRR for investment B is 10% IRR for investment A is 9.15 and IRR for investment B is 11% IRR for investment A is 10.15 and IRR for investment B is 12% IRR for investment A is 11.15 and IRR for investment B is 13%

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