Problem 22-04 A firm has the following investment alternatives: Cash Inflows Year B 1 $3,585 2 $ 1,175 1,175 1,175 3 $ 4,265 Each investment costs $3,200; investments B and C are mutually exclusive, and the firm's cost of capital is 8 percent. Use Appendix A, Appendix B and Appendix D to answer the questions. Assume that the investments are not mutually exclusive and there are no budget restrictions. a. What is the net present value of each investment? Use a minus sign to enter a negative values, if any. Round your answers to the nearest dollar. A: $ B: $ C: $ b. According to the net present values, which investment(s) should the firm make? The firm should make investment(s) C c. What is the internal rate of return on each investment? Round your answers to the nearest whole number. A: % B: % C: % d. According to the internal rates of return, which investment(s) should the firm make? The firm should make investment(s) B e. According to both the net present values and internal rates of return, which investments should the firm make? The net present value and internal rate of return lead to different decisions so the firm should resolve the conflict between B and Cv f. If the firm could reinvest the $3,585 earned in year 1 from investment B at 9 percent, which investment(s) should the firm make? Round your answer to the nearest dollar. Terminal value of investment B: $ The firm should make investment(s) C Would the answer be different if the rate were 10 percent? Round your answer to the nearest dollar. Terminal value of investment B: $ The firm should make investment(s) B g. If the firm's cost of capital had been 9 percent, what would be investment A's internal rate of return? Round your answer to the nearest whole number. %