Of the following investments, which would have the highest present value? Assume that the effective annual rate for all investments is the same and is greater than zero.

Investment A pays $250 at the end of every year for the next 10 years (a total of 10 payments).

Investment B pays $125 at the end of every 6-month period for the next 10 years (a total of 20 payments).

Investment C pays $125 at the beginning of every 6-month period for the next 10 years (a total of 20 payments).

Investment D pays $2,500 at the end of 10 years (just one payment).

Your bank account pays a 12% nominal rate of interest. The interest is compounded monthly. Which of the following statements is CORRECT?

The periodic rate of interest is 1% and the effective rate of interest is 12.5%.

The periodic rate of interest is 1% and the effective rate of interest is 12%.

The periodic rate of interest is 1% and the effective rate of interest is greater than 12.5%.

The periodic rate of interest is 1% and the effective rate of interest is less than 12.5%.

You are considering the purchase of a small income-producing property for $150,000 that is expected to produce the following net cash flows:

End of the year	Cash Flow
1	$50,000
2	$50,000
3	$50,000
4	$60,000

What is the internal rate of return (IRR) on this investment?

14.29%

14.51%

14.90%

22.56%