Question: For the following projects the Net Present Value and the Internal Rates of Return have been calculated: XYZ Cost (Io)400400400 NPV @10%$172 94145 NPV @23%

For the following projects the Net Present Value and the Internal Rates of Return have been calculated:

XYZ

Cost (Io)400400400

NPV @10%$172 94145

NPV @23% $[Negative] 1527

IRR20%27%29%

a. If X is a lease of a flower shop, Y is the lease of the same flower shop with a different management company, and Z is the purchase of the same flower shop, and the firm has $800 to invest...

Which project(s) would be accepted at:

10% cost of capital:

23% cost of capital:

b.If X is an auto shop, Y is a restaurant, and Z is a flower shop, and the firm has $800 to invest...

Which project(s) would be accepted at:

10% cost of capital:

23% cost of capital:

c. (as in b. above) If X is an auto shop, Y is a restaurant, and Z is a flower shop, and the firm has $1,200 to invest.

Which project(s) would be accepted at:

10% cost of capital:

23% cost of capital:

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