Question
SHOW WORK PLEASE!!!!!!!!! 1. Two mutually exclusive investments cost $10,000 each and have the following cash inflows. The firms's cost of capital 10% INVESTMENT CASH
SHOW WORK PLEASE!!!!!!!!!
1. Two mutually exclusive investments cost $10,000 each and have the following cash inflows. The firms's cost of capital 10%
INVESTMENT
CASH FLOW A B
YEAR 1
YEAR 2 $15, 407
YEAR 3
YEAR 4 $19, 390
A. What is the net presnt value of each investment?
b. What is the internal rate of the return of each investment?
c, Which investment (s) should the firm make?
d. Would your answers be different to C if the funds received in year 2 for the investment A could be reinvested at %16?
2. if a new college graduate wants a car costing $21,000 how much must be saved annually over the next four years if the funds are 5%?
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