Problem $22-12$

A firm has the following investment alternatives. Each one lasts a year.

$\backslash$table$[[$Investment$,$A$,$B$,$C$],[$Cash inflow,$$1,150,448,476],[$Cash outflow,$$1,000,400,400]]$

The firm's cost of capital is $6$ percent. A and B are mutually exclusive, and B and C are mutually exclusive. A: $

B: $ $$

$C$:$ $$

b$.$ What is the internal rate on investment A$?$ Investment B$?$ Investment C$?$ Round your answers to the nearest whole number.

A: $\%$

B: $\%$

C: $\%$

c$.$ Which investment$($s$)$ should the firm make?

The firn should make investment$($s$)$

d$.$ If the firm had unlimited sources of funds, which investment$($s$)$ should it make?

The firm should make investment$($s$)$

e$.$ If there were another alternative, investment $D,$ with an IRR of $5$ percent, which investment$($s$)$ should the firm make?

The firm should make investment$($s$)$

f$.$ If the firm's cost of capital rose to $14$ percent, what effect would that have on investment A$\text{'}$s IRR? Round your answer to the nearest whole number.

If the cost of capital rises to $14$ percent, the IRR of investment $A\%.$