Question: 2. Payback method and Internal rate of Return: The Caffeine Coffee Company has estimated the following inflows. The firm has a cost of capital of

2. Payback method and Internal rate of Return: The Caffeine Coffee Company has estimated the following inflows. The firm has a cost of capital of 12 percent. The project being analyzed is as follows ($27,000 investment) Cash Flow $15,000 Year 12,000 9.000 yback method, in what year the cost of the investment will be recoopered? b. Under the internal rate of return, should the investment be chosen with a 12%, cost of capital? 12-21. Solution

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