Question 4 Consider the following B 1 Dato Cash flow 230-Jun-07 -899 3 14-Feb 08 70 4 14-Feb-09 70 5 14-Feb-10 6 14-Feb-11 701 7 14-Feb-12 70 8 14-Feb-131 1,070 INVESTMENT A 70 5 6 7 8 9 10 11 A B Date Cash flow 30-Jun-07 -500 14-Feb-08 100 14-Feb-09 300 14-Feb-10 400 14-Feb-11 600 14-Feb-12 800 14-Feb-13 -1,800 INVESTMENT B (a) Compute the IRR OF investment A (b) Use data table to plot the NPV of Investment B, assume an annual discount rate of 15%. (c) If the first cash flow of both investments occurs on the 14-Feb-17, compute all the IRRs. (d) Where would you likely invest? Question 4 Consider the following B 1 Dato Cash flow 230-Jun-07 -899 3 14-Feb 08 70 4 14-Feb-09 70 5 14-Feb-10 6 14-Feb-11 701 7 14-Feb-12 70 8 14-Feb-131 1,070 INVESTMENT A 70 5 6 7 8 9 10 11 A B Date Cash flow 30-Jun-07 -500 14-Feb-08 100 14-Feb-09 300 14-Feb-10 400 14-Feb-11 600 14-Feb-12 800 14-Feb-13 -1,800 INVESTMENT B (a) Compute the IRR OF investment A (b) Use data table to plot the NPV of Investment B, assume an annual discount rate of 15%. (c) If the first cash flow of both investments occurs on the 14-Feb-17, compute all the IRRs. (d) Where would you likely invest