Two mutually exclusive investments have projected cash flows as follows:

Investment

Period 1 2 3 4

A. Crop land -10000 5000 5000 5000

B. Forest land -10000 0 0 30000

a. Assuming a required rate-of-return of 10%, determine the net present value for each investment.

b. Determine the internal rates-of-return for each investment.

c. Which investment would you select? Why? What assumptions influenced your decision?