Appendix B and D respectivley.

Problem 22-03 A firm has two possible investments with the following cash inflows. Each investment costs $510, and the cost of capital is eight percent. Use Appendix B and Appendix D to answer the questions. Assume that the investments are not mutually exclusive and there are no budget restrictions Cash Inflows Year A B 1 $200 $310 180 110 2 3 200 200 a. Based on each investment's net present value, which investment(s) should the firm make? Use a minus sign to enter negative values, if any, Round your answers to the nearest dollar Investment : $ Investment B: $ The firm should make both investments b. Based on each investment's internal rate of return, which investment(s) should the firm make? Round your answers to the nearest whole number: Investment A Investment B The firm should make both investments Is this the same answer you obtained in part b? It is the same answer as obtained in part b c. If the cost of capital were to increase to 10 percent, which investment(s) should the firm make? Use a minus sign to enter negative values, if any. Round your answers for the net present values to the nearest dollar and for internal rates of return to the nearest whole number Net present values: Investment A: 5 Investment B: $ Internal rates of return; Investment A: % Investment B: * The firm should make investment A Interest Factors for the Present Value of One Dollar Time Period ar TE % , 60 5 12 Interest Factors for the Present Value of an Annuity of One Dollar Pero 10% 1 2 4 5 13 5% 7% 8% 9% 12% 14% 16% 18% 20% 28% 32% 36% 0.990 0.980 0,971 0962 0.952 0.943 0.935 0.926 0.917 0.909 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 1.690 1647 1.605 1.566 1.528 1.457 1392 1332 1.276 2.941 2.884 2.829 2.775 2.723 2673 2624 2.577 2.531 2.487 2.402 2322 2.246 2.174 2.106 1981 1.868 1766 1674 3902 3.808 3.717 3630 3.546 3.465 3.387 3.312 3.240 3.170 3,037 2914 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 3.993 3.890 3.791 3.605 3.433 3.274 3.127 2991 2.745 2.532 2345 2.181 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4355 4.111 3.889 3.685 3.498 3326 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 4868 4.564 4.288 4.039 3.812 3.605 3.242 2937 2678 2.455 7.652 73257020 6.733 6.463 6.210 597 5.7475.535 5.335 4.968 4.639 4.344 4078 3.837 3.421 3.076 2.786 2540 8.566 8.162 7786 7435 7108 6.802 6.515 6.247 5.985 5.759 5328 4.946 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 7943 7.536 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 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 4.910 4533 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 7367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2.740 15 13.865 12.849 11938 11118 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 7.824 6.974 6.265 5,669 5.162 4.730 4.003 3503 3.088 2.758 17 15.562 14.292 13.166 12 166 11.274 10.477 9.763 9.122 8544 8.002 7.120 6.373 5.749 5.222 4.775 4,059 3.518 3.097 2.763 18 16.398 14992 13.754 12.659 11690 10.828 10.059 93728.756 8201 7.250 6.467 5818 5.273 4.812 4.080 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 4.0973.539 3.109 2.770 20 18.046 16.351 14.877 13.590 12.462 11.470 10 594 9,818 9.128 8.514 7469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2772 25 22.022 19.522 17413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6873 5.097 5.467 4.948 4.147, 3.564 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