Question: Please show all work. Will like for correct answer. a- drop down both investments, investment A, investment B, neither of investments b- drop down both
Problem 22-03 A firm has two possible investments with the following cash inflows. Each investment costs $510, and the cost of capital is eight percent. Use Appendix B and Appendix D to answer the questions. Assume that the investments are not mutually exclusive and there are no budget restrictions. Cash Inflows Year $310 180 110 a. Based on each investment's net present value, which investment(s) should the firm make? Use a minus sign to $200 200 200 enter negative values, if any, Round your answers to the nearest dollar Investment A: $ Investment B: $ The firm should make Select- b. Based on each investment's internal rate of return, which investment(s) should the firm make? Round your answers to the nearest whole number Investment A: Investment B: The firm should make Select answer you obtained in part b? -Select: the same answer as obtained in part b It -Select- the same answer as obtained in part b. al were to increase to 10 percent, which investment s) should the firm make? Use a minus sigrn egative values, if any. Round your answers for the net present values to the nearest dollar and for to enter n internal rates of return to the nearest whole number Net present values: Investment A: $ Investment B: $ Internal rates of return: Investment A: Investment B: The firm should make -Select
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