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A firm's cost of capital is 8 percent. The firm has three investments to choose amona: the cash flows of each are as follows:Each investment

A firm's cost of capital is 8 percent. The firm has three investments to choose amona: the cash flows of each are as follows:Each investment reguires a $1.800 cash outlav. and investments B and C are not mutually exclusive. Use Appendix A. Appendix B and Appendix D to answer the questions. Assume that the investments aremutually exclusive and there are no budget restrictionsA) Which investments) should the firm make according to the NPVs? Use a minus sian to enter negative values. if any. Round vour answers to the nearest dollar. a.____ b.____ c.____ The firm should make investments in: ____B) Which investments) should the firm make according to the IRRs? Round your answers to the nearest whole number: a.____ b.____ c.____ The firm should make investments in: ____C) If all funds from investment C are reinvested at 10 percent, which investment(s) should the firm make? Round your answer to the nearest dollar. Terminal value of investment C: $____ The firm should make investments in: ____Would your answer be different if the reinvestment rate were 8 percent? Round your answer to the nearest dollar. Terminal value of investment C: $____ The firm should make investments in: ____
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