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A Firm Has Three Investment Opportunities A If the Net Present Value Method Is Used, Which

question 23

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A firm has three investment opportunities. Each costs $1,000, and the firm's cost of capital is 10 percent. The cash inflow of each investment is as follows:​  Cash Inflow  Year ABC1$300500100230040020033002004004300100500\begin{array}{ccccc}&&\text { Cash Inflow }\\\text { Year } &A&B&C\\1 & \$ 300 & 500 & 100 \\2 & 300 & 400 & 200 \\3 & 300 & 200 & 400 \\4 & 300 & 100 & 500\end{array}
a. If the net present value method is used, which investment(s) should the firm make?
b. What is the internal rate of retum of investment A ? The internal rate of return of investment B is 10.22% and 6.15% for investment C. Which investment s ) should the firm make?
c. What is the payback period for each investment?

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