**Use financial calculator for calculations**

3. You are considering two investments that each cost $10,000. The investments are mutually exclusive so the firm can only make one of the investments not both. The firm's cost of capital is 12%. Cash Inflows Year 13 $12,400 1 0 0 0 0 $19,400 4 0 a. Based on net present value, which investment should you make'? b. Based on internal rate of return, which investment should you make