Table below shows the projected cash flow of two investments X and Y: Year X ( thousands) Y ( thousands) 0 -300.18 399.3 1 20 O 22 100 AN 25.5 200 330 195.5 Find IRRs for investments X and Y using trail-and-error method. Hints: The range for investment X's IRR is from 6% to 22%; the range for investment Y's IRR is from 2% to 26%. (61 (Total 25 M 1. (a) VOD Financials, LLC. has to make a choice between investments A and B which are mutually exclusive. Their costs of capital are both 9% per annum. Their respective two periods of cash inflows are as follows: Investment A B Cash Flows ( thousands) Year 0 Year 1 -700 475 -400 250 Year 2 350 150 Required: (0) Calculate the NPV of investments A and B based on the cost of capital rate. (3 Marks) (ii) Calculate the IRR of investments A and B. (4 Marks) (iii) Compare the NPVs and IRRs of investments A and B. Using appropriate evaluations, decide which investment you would recommend to VOD Financials, LLC. Explain your answer. (3 Marks) recommend to VOD Financials, LLC. Explain your answer. You have your choice of two investment accounts. Investment A is a 20-year annuity that features end-of-month NKR12,000 payments and has an interest rate of 6 per cent compounded monthly. Investment B is an 8 per cent continuously compounded lump sum investment, also good for 15 years. How much money would you need to invest in B today for it to be worth as much as investment A 20 years from now? (0) What is the future value of Investment A? If Investment B is compounded on monthly basis, How much money would you need to invest in B today for it to be worth as much as investment A 20 years from now? (iii) Find the maximum value of effective annual rate (EAR) of investment B. Apply this rate for investment B and find out How much money would you need to invest in B today for it to be worth as much as investment A 20 years from now