appendix c

appendix a

appendix d

investments Quick and Slow cost $1,000 each, are mutually exclusive, and have the following cash flows. The firm's cost of capital is percent: 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 any. Round your answers to the nearest cent. NPV (Investment Quick): $ NPV (Investment Slow): \$ The firm should make investment(s) (v). 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); 8% The firm should make investment(s) (. c. If Q is chosen, the $1,200 can be relnvested and earn 8 percent. Does this information alter your conclusions concerning investing if Q and S? To answer, assume that S's cash flows can be reinvested at its internal rate of return, Use the rounded internal rate of return 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) If Q is chosen, the $1,200 can be reinvested and earn 8 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 internal rate of return. Use the rounded internal rate of return from part b. Use Appendix A and Appendix C to answer the question. Round your answers to the nearest cent. Terminal value (Investmerit Quick): $ Terminal value (Investment Slow): $ (3 The firm should make investment(s) 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 Future Value of One Dollar Interest Factors for the Present Value of an Annuity of One Dollar