ch 22 A firm has two $1,000, mutually exclusive investment alternatives with the following cash inflows. The cost of capital is 6 percent. Year Cash Inflow A

Year Cash Inflow

A B

1 $175 $1,100

2 175 -

3 175 -

4 175 -

5 175 -

6 175 -

7 175 -

8 175 -

Based on IRR, You should select

(You can use the CFj and IRR functions on the hp10bii or the IRR function in Excel)