appendix b

appendix d

A firm has two possible investments with the following cash inflows. Each investment costs $410, and the cost of capital is seven percent. Use Appendix Band Appendix D to answer questions. Assume that the investments are not mutually exclusive and there are no budget restrictions Cash Inflows AB $ 160 $ 210 160 160 160 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 A: $ 1 Investment B: $ The firm should make -Select- 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 -Select- Is this the same answer you obtained in part b? It-Select the same answer as obtained in part b. If the cost of capital were to increase to 9 percent, which investments) should the firm make? Use a minus sign to enter negative values, fany 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: $ Investment B: $ Investment B: $ The firm should make Select 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 Select- Is this the same answer you obtained in part b? It Select the same answer as obtained in part b. c. If the cost of capital were to increase to 9 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: $ Investment B: $ Internal rates of return: Investment A: Investment B: The firm should make -Select- Interest Factors for the Present Value of One Dollar Time Period yeam) 16 , 69 % 128 14% 15 164, 18, 20. 24% 28% 1990 980 91 962 95 911959269179 11 1 BOBB2BIT 232 U6 TB1 980 9619439590788 8760 3 1894 650610 99.9594716 751 12 5568954 196192.89%E32F10891 925 5164373 195 96863-22 TSM13.E55D-E250 59 4974764314DR 3 ) | 457 - 400 1942 888 838 90 46705 666 630 96 564 307 9338183 ) || 562356) 43511 23 :29 : 3 6 152 467 404 199775 03b192 | 544500 - AEO 424 905820744. 614558 508461 427986 | 322 456 432,410 30 35 25 227 | 376 4 314 17 212 | 327 266,73379 308 1.284 263226 194 144 108 270 247 227 191 162 16085 151 361 * w SW | 28/ S 1896804 650 AB) 527 45 429388-350 1.887788 -701 6255519) 44 197-356 | 319 1879773681b01 N 10 116 26 200 661577- 63 4861743 642555 21 47 38 35 275 29 25 195 162 135094 066 168 13712076 052 145 16 09306040 125 199 2018-09 032 108064 065 040025 205 183 123 853178 23 34 458 30 39 1922 218 163 2307 093 01 - 032 019- 844 TM 3 6 37 317 20 23598 146 093 080_060 MS-076 05 1 1 12- 01-1 TIETF 1828686 570 75396 33 276 - 22 1964 16 CB300DE00- 303197CC9 2 8 178 49 104 073 06/ 05] 03/ 26 0 CDF 780-60478 3759 733 184 bale_192050 038 0310_024 016 Do LS007 010 005 002 42 2308 23174 131 099 075 057 03 020 015 012_007 004 002 001 Interest Factors for the Present Value of an Annuity of One Dollar Time Period year 1 2 3 4 5 1% 2% 3% 45% 0.990 0 980 0.971 0.962 0.952 0.943 0.935 0.926 1.970 1.942 1913 1.886 1.859 1.833 1808 1.783 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 3.902 3.808 3.717 3,630 3.546 3465 3.387 3.312 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 36 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.75 1.759 1.736 1.690 1.647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1981 1.868 1.766 1.674 3.240 3.170 3.037 2914 2.798 2.690 2.589 2.404 2.241 2.096 1966 3.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 6 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2.399 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2678 2455 8 7.652 7.325 7020 6.733 6.463 6.210 5.9715,747 5.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 9 8.566 8.1627 .786 7.435 7108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4.607 4.303 4.031 3.566 3.184 2.868 2,603 109.471 8.983 8.530 8.111 77227 .360 70246.210 6.418 6.145 5.6505 .216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 11 12 13 14 15 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.1396.805 6.495 5.988 5.453 5.079 4656 4327 3.776 3 335 2.978 2.683 11.255 10.575 9.954 9.385 8.863 8.384 7943 7.536 71616.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 12.134 11 348 10.635 9986 9.394 8.534 8.358 7904 7.487 7.103 6.424 5.842 5.342 4.910 4.533 3.912 3.427 3.040 2.727 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 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8060 7.606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 17 18 19 20 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 4003 3.5033.089 2.758 15 562 14 292 13.166 12.166 11.274 10.477 9763 9.122 8.544 8.002 7.120 6.373 5.749 5.222 4775 4 059 3.518 3.097 2.763 16 398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2017.250 6.467 5.818 5.273 48124.000 3.529 3.104 2.767 17 226 15 678 14 324 13.134 12085 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 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7469 6.623 5929 5.353 4.870 4.110 3.546 3.113 2.772 25 22 023 19 523 17.413 15 622 14.094 12 783 11.654 10.675 9.8239.077 7.843 6.873 6.097 5.467 4.948 4 147 3.564 3.122 2.776 30 75 808 22.937 19.600 17 292 15 373 13765 12.409 11258 10.214 9.427 8.055 7003 6177 5517 4979 4.160 3.569 3.124 2.778