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MBTS Finance Co . has the following investment alternatives. Each one lasts a year. Investment A B C Cash Inflow $ 1 , 1 5

MBTS Finance Co. has the following investment alternatives. Each one lasts a year.
Investment A B C
Cash Inflow $1,150 $560 $600
Cash Outflow $1,000 $500 $500
a. What is the net present value of Investment A? Investment B? Investment C?
b. What is the internal rate or return on Investment A? Investment B? Investment C?
c. Which investment(s) should MTBS Finance Co. make? Why?

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