Investments Quick and Slow cost $1,000 each, are mutually exclusive, and have the following cash flows. The firms cost of capital is 10 percent. Cash Inflows Q S Year 1 $1,300 $386 2 386 3 386 4 386 According to the net present value method of capital budgeting, which investment(s) should the firm make? Use Appendix B and Appendix D to answer the question. Use a minus sign to enter negative values, if any. Round your answers to the nearest cent. NPV (Investment Quick): $ 1054.48 NPV (Investment Slow): $ 223.57 The firm should make investment(s) Slow . According to the internal rate of return method of capital budgeting, which investment(s) should the firm make? Use Appendix D to answer the question. Round your answers to the nearest whole number. IRR (Investment Quick): 72.76 % IRR (Investment Slow): 19.96 % The firm should make investment(s) Quick . If Q is chosen, the $1,300 can be reinvested and earn 14 percent. Does this information alter your conclusions concerning investing in Q and S? To answer, assume that Ss cash flows can be reinvested at its internal rate of return. Use the rounded internal rate of return from part b. Use Appendix A and Appendix C to answer the question. Round your answers to the nearest cent. Terminal value (Investment Quick): $ 3253.69 Terminal value (Investment Slow): $ 2070.86 The firm should make investment(s) Quick . Would your answer be different if Ss cash flows were reinvested at the cost of capital (10 percent)? Use Appendix C to answer the question. Round your answer to the nearest cent. Terminal value (Investment Slow): $ 1791.43 The firm should make investment(s) Quick

Investments Quick and Slow cost $1,000 each, are mutually exclusive, and have the following cash flows. The firm's cost of capital is 10 percent. Cash Inflows Q S Year 1 $1,300 $386 2 386 3 386 4 386 a. According to the net present value method of capital budgeting, which investment(s) should the firm make? Use Appendix B and Appendix D to answer the question. Use a minus sign to enter negative values, if any. Round your answers to the nearest cent. NPV (Investment Quick): $ 1054.48 NPV (Investment Slow): $ 223.57 The firm should make investment(s) Slow b. According to the internal rate of return method of capital budgeting, which investment(s) should the firm make? Use Appendix D to answer the question. Round your answers to the nearest whole number. IRR (Investment Quick): 72.76 % IRR (Investment Slow): 19.96 % The firm should make investment(s) Quick c. If Q is chosen, the $1,300 can be reinvested and earn 14 percent. Does this information alter your conclusions concerning investing in Q and S? To answer, assume that S's cash flows can be reinvested at its internal rate of return. Use the rounded internal rate of return from part b. Use Appendix A and Appendix C to answer the question. Round your answers to the nearest cent. Terminal value (Investment Quick): $ 3253.69 Terminal value (Investment Slow): $ 2070.86 The firm should make investment(s) Quick Would your answer be different if S's cash flows were reinvested at the cost of capital (10 percent)? Use Appendix C to answer the question. Round your answer to the nearest cent. Terminal value (Investment Slow): $ 1791.43 The firm should make investment(s) Quick Investments Quick and Slow cost $1,000 each, are mutually exclusive, and have the following cash flows. The firm's cost of capital is 10 percent. Cash Inflows Q S Year 1 $1,300 $386 2 386 3 386 4 386 a. According to the net present value method of capital budgeting, which investment(s) should the firm make? Use Appendix B and Appendix D to answer the question. Use a minus sign to enter negative values, if any. Round your answers to the nearest cent. NPV (Investment Quick): $ 1054.48 NPV (Investment Slow): $ 223.57 The firm should make investment(s) Slow b. According to the internal rate of return method of capital budgeting, which investment(s) should the firm make? Use Appendix D to answer the question. Round your answers to the nearest whole number. IRR (Investment Quick): 72.76 % IRR (Investment Slow): 19.96 % The firm should make investment(s) Quick c. If Q is chosen, the $1,300 can be reinvested and earn 14 percent. Does this information alter your conclusions concerning investing in Q and S? To answer, assume that S's cash flows can be reinvested at its internal rate of return. Use the rounded internal rate of return from part b. Use Appendix A and Appendix C to answer the question. Round your answers to the nearest cent. Terminal value (Investment Quick): $ 3253.69 Terminal value (Investment Slow): $ 2070.86 The firm should make investment(s) Quick Would your answer be different if S's cash flows were reinvested at the cost of capital (10 percent)? Use Appendix C to answer the question. Round your answer to the nearest cent. Terminal value (Investment Slow): $ 1791.43 The firm should make investment(s) Quick