Question: Question 2 (26 marks) A&B Enterprises is trying to select the best investment from two alternatives. Cash flows for each alternative are: Initial outlay $
Question 2 (26 marks) A&B Enterprises is trying to select the best investment from two alternatives. Cash flows for each alternative are: Initial outlay $ 96,000 $ 96,000 Year 1 2 3 4 5 Investment A Investment B $6,000 $68,000 $22,000 $48.000 $25,000 $27,000 $74,000 0 $71.000 For each of the investments, calculate the following (use a 10% discount rate): (a) Payback period (b) Internal rate of return (c) For each method individually, which is the better investment
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