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appendix a,b, and d respectivley A firm's cost of capital is 10 percent. The firm has three investments to choose among; the cash flows of

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appendix a,b, and d respectivley
A firm's cost of capital is 10 percent. The firm has three investments to choose among; the cash flows of each are as follows: Cash Inflows A B $1,740 Year 1 2 3 $ 551 551 551 4 $2,533 Each investment requires a $1,500 cash outlay, and investments B and Care mutually exclusive. 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. 3. Which investment(s) should the firm maker according to the net present values? Use a minus sign to enter negative values, if any. Round your answers to the nearest dollar A: 5 B: $ C$ The firm should make investment(s) B b. Which investment/s) should the firm make according to the internal rates of return? Round your answers to the nearest whole number, P B % The firm should make investment(s) C of all funds from investment Care reinvested at 14 percent, which investment(s) should the firm make? Round your answer to the nearest dollar Terminal value of investment C: $ The firm should make investment(s) Would your answer be different if the reinvestment rate were 10 percent? Round your answer to the nearest dollar Terminal value of investment C: $ Interest Factors for the Future Value of One Dollar Time Period lee 45 1 2 3 4 5 15 2% 3% 5% 7% 1.010 1.020 1030 1040 1050 1.060 1070 1.020 1.040 1.061 1.082 1.102 1.124 1.145 1.030 1.061 1.093 1.125 1.158 1.191 1.225 1.041 1082 1.126 1.170 1216 1.262 1311 1.051 1.104 1.159 1217 1276 1.338 1.403 0% 1.080 1.166 1.260 1.360 1.469 9% 1.090 1.188 1.295 1.412 539 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 15% 1.150 1.322 1.521 1.749 2.011 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1939 2288 20% 1.200 1.440 1.728 2.074 2.488 6 7 8 9 10 1.062 1.126 1.194 1.265 1340 1.419 1.501 1.072 1.149 1.230 1316 1.407 1.504 1.606 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1.094 1.195 1.305 1.423 1.551 1.689 1.838 1.105 1.219 1.344 1.480 1.629 1.791 1.967 1.587 1.714 1.851 1.999 2.159 1.677 1.828 1.993 2.172 2.367 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2313 2.660 3.059 3.518 4.046 2.436 2.826 3.278 3.803 4.411 2.700 3.186 3.759 4.436 5.234 2986 3.583 4.300 5.160 6.192 11 12 13 14 15 1.116 1.243 1.384 1.539 1.710 1.898 2.105 1.127 1.268 1.426 1.601 1.796 2.012 2.252 1.138 1.294 1.469 1.665 1.886 2.133 2.410 1.149 1319 1.513 1.732 1980 2.261 2579 1.161 1.346 1.558 1.801 2.079 2.397 2.759 2.332 2.518 2.720 2.937 3.172 2.580 2.813 3.066 3342 3.642 2.853 3.138 3.452 3.797 4.177 3.479 3.896 4.363 4.887 5.474 4.226 4.818 5.492 6.261 7.138 4,652 5.350 6.153 7,076 8.137 5.117 5.936 6.886 7988 9.266 6.176 7.287 8.599 10.147 11.973 7430 8.916 10.699 12.839 15.407 16 17 18 19 20 1.173 1.373 1605 1.873 2.183 2.540 2.952 1.184 1.400 1653 1.948 2.292 2.693 3.159 1.196 1.428 1.702 2.026 2.407 2.854 3.380 1.208 1.457 1754 2107 2.527 3.026 3.617 1.220 1.486 1.806 2.191 2.653 3.207 3.870 3.426 3.700 3.996 4.316 4.661 3.970 4.328 4.717 5.142 5.604 4.595 5.054 5.560 6.116 6.728 6.130 8.137 6.866 9.276 7.690 10.575 8.613 12.056 9.646 13.743 9.358 10.748 10.761 12.468 12.375 14.463 14.232 16.777 16.367 19.461 14.129 16,672 19.673 23.214 27.393 18.488 22.186 26.623 31.948 38.337 25 1.282 1,6412.094 2.666 3.386 4.292 5.427 6.848 8.623 10.835 17.000 26.462 32.919 40.874 62.688 95,396 30 1.348 1.811 2.427 3.243 4.322 5.743 7,612 10.063 13.268 17.449 29.960 50.950 66.212 85.850 143.370 237.370 Interest Factors for the Present Value of One Dollar Time Period 9 WN- * , 146 5 2 12 99 Interest Factors for the Present Value of an Annuity of One Dollar Period 1 2 3 5% 6% 7% 8% 10% 12% 14% 16% 18% 20% 28% 32% 36% 0.990 0.980 0,971 0962 0.952 0.943 0935 0.926 0.917 0909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1970 1942 1913 1886 1859 1833 1808 1.783 1.759 1736 1690 1647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2.941 2.884 2829 2.775 2.723 2673 2624 2.577 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1981 1.868 1.766 1674 3902 3.808 3.717 3630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.798 2.690 2589 2.404 2.241 2.096 1966 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.9933.890 3.791 3.605 3.433 3.274 3.127 2991 2.745 2.532 2.345 2.181 5.795 5.601 5.417 5242 5.076 4.917 4.766 4.623 4.486 4355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2399 6.728 6 472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2937 2.678 2.455 7.652 7325 7020 6.733 6.463 6.210 597) 5.7475.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7435 7108 6.802 6.515 6.247 5.985 5.759 5328 4946 4,607 4.303 4.031 3.566 3.184 2.868 2.603 9.471 8.983 8.530 8.111 7722 7360 7024 6.710 6.418 6.145 5.6505.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 6 7 8 9 10 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2 683 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3387 3.013 2.708 13 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7.487 7.103 6.424 5.842 5.342 4910 4.533 3.912 3.427 3.040 2.727 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2.740 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 14.718 13.578 12 561 11.652 10.838 10.106 9.447 8,851 8.312 7824 6.974 6.265 5,669 5.162 4.730 4.003 3503 3.088 2.758 17 15562 14.292 13.166 12 166 11.274 10.477 9.763 9.122 8.544 8.002 7.120 6.373 5749 5.222 4.775 4,059 3.518 3.097 2.763 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9372 8.756 8.201 7.250 6.467 5.818 5.273 4,812 4080 3.529 3.104 2767 19 17.226 15.678 14 324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 5.877 5.316 4.844 4.097 3.539 3.109 2.770 2018.046 16 351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2.772 25 22.022 19.522 17,413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.097 5.467 4948 4.147, 3564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.055 7003 6 177 5517 4979 4.160 3.569 3.124 2.778

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