What is each investment''s internal rate of return

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Reference no: EM133273728

Question - 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 costs $1,400, and the firm's cost of capital is 10 percent.

a. What is each investment's internal rate of return?

b. Should the firm make any of these investments?

c. What is each investment's net present value?

d. Should the firm make any of these investments?

Reference no: EM133273728

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