Question: a. According to the net present value method of capital budgeting, which investment(s) should the firm make? Use Appendix B and Appendix D to answer








a. According to the net present value method of capital budgeting, which investment(s) should the firm make? Use Appendix B and Appendix D to answer the question. Use a minus sign to enter negative values, if anv. Round vour answers to the nearest cent. NPV (Investment Quick): \$ NPV (Investment Slow): \$ The firm should make investment(s) b. According to the internal rate of retu tal budgeting, which investment(s) should the firm make? Use Appendix D to answer the question. Round your answers to the nearest whole number. IRR (Investment Quick): b. According to the internal rate of return method of capital budgeting, which investment(s) should the firm make? Use Appendix D to answer the question. Round your answers to the nearest whole number. IRR (Investment Quick): % IRR (Investment Slow): % The firm should make investment(s) c. If Q is chosen, the $1,000 can be re can be reinvested at its internal rate 10 percent. Does this information alter your conclusions concerning investing in Q and S? To answer, assume that S's cash flows nearest cent. :rounded internal rate of return from part b. Use Appendix A and Appendix C to answer the question. Round your answers to the c. If Q is chosen, the $1,000 can be reirvested and eam 10 percent. Does this information alter your conclusions concerning investing in Q and S? To answer, assume that S's cash flows can be reinvested at its intemal rate of return. Use the rounded internal rate of retum from part b. Use Appendix A and Appendix C to answer the question. Round your answers to the nearest cent. Terminal value (Investment Quick): $ Terminal value (Investment Slow): $ The firm should make investment(s) Would your answer be different if S : reinvested at the cost of capital ( 6 percent)? Use Appendix C to answer the question. Round your answer to the nearest cent. Would your answer be different if S's cash flows were reinvested at the cost of capital ( 6 percent)? Use Appendix C to answer the question. Round your answer to the nearest cent. Terminal value (Investment Slow): $ The firm should make investment(s): Interest Factors for the Present Value of One Dollar Time Period Interect Factnre far the Filture I/alue of One Dollar Interest Factors for the Future Value of an Annuity of One Dollar Interest Factors for the Present Value of an Annuity of One Dollar
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