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The following 3 Questions are based on Exhibit 3 Exhibit 3: A firm has the following investment alternatives: Cash Inflows Year B C $400 2.

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The following 3 Questions are based on Exhibit 3 Exhibit 3: A firm has the following investment alternatives: Cash Inflows Year B C $400 2. 400 400 3 400 800 4 400 800 1,800 Each investment costs $1,400 and the firm's cost of capital is 10 percent. Based on Exhibit 3 above, what is each investment's internal rate of return? O 5%, 12%, 8% 5.6%, 11.9%, 6.5% 6%, 10%, 7% 5.5%, 10.6%, 7.4% Quesion 19 0.5 pts Based on Exhibit 3 above, which of these investments should the firm choose based on IRR? A and B B only O A only O Band C Question 20 0.5 pts Based on Exhibit 3 above, what is each investment's net present value? $132,-$78, -171 0-$132. $78,-171 O 0,00 Indeterminate

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