Two mutually exclusive investments cost $10,000 each and have the following cash inflows. The firm's cost of capital is 12%. Investment Cash inflow:

A B Year 1 $12,407 2 3 4 $19,390

a. What is the net present value of each investment?

b. What is the internal rate of return of each investment? Cost of capital is 12%.

c. Which investment(s) should the firm make? Cost of capital is 12%.

d. Would your answers be different to c if the funds received in year 1 for investment A could be reinvested at 12%, 16%, or 20%?