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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 percent. The firm has three investments to choose amona: the cash flows of each are as follows:Each investment reguires a $ 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 percent, which investments 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 percent? Round your answer to the nearest dollar. Terminal value of investment C: $ The firm should make investments in:
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