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A rm has the following investment alternatives: Cash Inflows Year A B C 1 $ 1,146 5 3,480 1, 146 3 1, 146 5 4,525

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A rm has the following investment alternatives: Cash Inflows Year A B C 1 $ 1,146 5 3,480 1, 146 3 1, 146 5 4,525 Each investment costs $2,900; investments B and C are mutually exclusive, and the rm's cost of capth is 10 percent. Use Appendix A, Appendix B and Appendix D to answer the questions. Assume that the investments are not mutually exclusive and there are no budget restrictions. a. What is the net present value of each investment? Use a minus sign to enter a negative values, if any. Round your answers to the neart dollar. A:$ B:$ C:$ b. According to the net present values, which investments) should the rm make? The rm should make investment(s) -Selet:t- a . c. What is the internal rate of return on each investment? Round your answers to the nearest whole number. A: WE: B: WE: C: % d. Acoording to the internal rates of return, which investmentfs) should the rm make? 111e rm should make inthmends) -Select- a . & . According to both the net present values and internal rates of return , which investments should the firm make ? The net present Value and internal rate of return lead to| - Select - $ 50 the firm should\ - Select - F. If the firm could reinvest the $3, 480 earned in year 1 from investment & at 12 percent , which investment ('s ) should the firm make ? Round your answer to the nearest dollar . Terminal value of investment & :$ The firm should make investment ( 5 )| - Select -* . Would the answer be different if the rate were 16 percent ? Round your answer to the nearest dollar . Terminal value of investment E : $ The firm should make investment ( 5 )| - Select -\ . 9 . If the firm's cost of capital had been 12 percent , what would be investment A's internal rate of return ? Round your answer to the nearest whole number . 17 . The payback method of capital budgeting selects which investment ? The payback method of capital budgeting selects investment| - Select -|$`

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