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Two mutually exclusive investments cost $10,000 each and have the following cash inflows. The firms cost of capital is 10%. A. what is the net

Two mutually exclusive investments cost $10,000 each and have the following cash inflows. The firms cost of capital is 10%. A. what is the net present value of each investment? B What is the internal rate of return of each investment/ C. Which investment (s) should firm make/ D. Would your answers be different to C if the funds received in year 2 for investment A could be reinvested at 16%? Cash Inflow A B Year 1 $ Year 2 $15,407 Year 3 Year 4 $19,390

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