What is each investments internal rate of return should the


A firm has the following investment alternatives

CASH INFLOWS

Year A B C

1 $400 -- ---

2 $400 $400 ---

3 $400 $800 ---

4 $400 $800 $1,800

Each investment cost $1,400 and the firm's cost of capital is 10 percent.

a. What is each investments internal rate of return?

b. Should the firm make any of these investments?

c. What is each investments net present value?

 

d. Should the firm make any of these investments?

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Financial Management: What is each investments internal rate of return should the
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