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computing net present value ( NPV ) and internal rate of return ( IRR ) A firm has the following investment alternatives: Cash Inflows Year
computing net present value NPV and internal rate of return IRR A firm has the following investment alternatives:
Cash Inflows
Year A B C
$ $ $
Each investment costs $ and the firm's cost of capital is percent.
a What is each investment's internal rate of return?
b Should the firm make any of these investments?
c What is each investment's net present value?
d Should the firm make any of these investments?
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