12. (10) For the following projects the Net Present Value and the Internal Rates of Return have been calculated: X Y Z Cost (10) 400 400 400 NPV @10% $ 172 94 145 NPV @23% $ [Negative] _15 27 IRR 20% 27% 29% a. If X is a lease of a flower shop, Y is the lease of the same flower shop with a different management company, and Z is the purchase of the same flower shop, and the firm has $800 to invest... Which project(s) would be accepted at: 10% cost of capital: Only X (highest NPV) and mutually exclusive 23% cost of capital: Only Z (highest NPV) and mutually exclusive b. If X is an auto shop, Y is a restaurant, and Z is a flower shop, and the firm has $800 to invest... Which project(s) would be accepted at: 10% cost of capital: Y and Z (largest IRR within budget) 23% cost of capital: Y and Z (largest IRR within budget) c. (as in b. above) If X is an auto shop, Y is a restaurant, and Z is a flower shop, and the firm has $1,200 to invest. Which project(s) would be accepted at: 10% cost of capital: All three X, Y, and Z because within budget (NPV are positive) 23% cost of capital: Y and Z because within budget (X's NPV is negative) 12. (10) For the following projects the Net Present Value and the Internal Rates of Return have been calculated: X Y Z Cost (10) 400 400 400 NPV @10% $ 172 94 145 NPV @23% $ [Negative] _15 27 IRR 20% 27% 29% a. If X is a lease of a flower shop, Y is the lease of the same flower shop with a different management company, and Z is the purchase of the same flower shop, and the firm has $800 to invest... Which project(s) would be accepted at: 10% cost of capital: Only X (highest NPV) and mutually exclusive 23% cost of capital: Only Z (highest NPV) and mutually exclusive b. If X is an auto shop, Y is a restaurant, and Z is a flower shop, and the firm has $800 to invest... Which project(s) would be accepted at: 10% cost of capital: Y and Z (largest IRR within budget) 23% cost of capital: Y and Z (largest IRR within budget) c. (as in b. above) If X is an auto shop, Y is a restaurant, and Z is a flower shop, and the firm has $1,200 to invest. Which project(s) would be accepted at: 10% cost of capital: All three X, Y, and Z because within budget (NPV are positive) 23% cost of capital: Y and Z because within budget (X's NPV is negative)