The initial investment and expected profits from two mutually exclusive capital investments being considered by a firm

Question:

The initial investment and expected profits from two mutually exclusive capital investments being considered by a firm are as follows:

a. Calculate the internal rate of return for each investment. Which one would be selected based on an IRR ranking?
b. Which investment should be chosen if the firm€™s cost of capital is 14%?
c. Which investment should be chosen if the firm€™s cost of capital is 17%?

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...