2. A firm has the following investment alternatives Cash inflows Year A В C 1,100 $3,600 2 1,100 3 1,100 $4,562 • Each investment costs $3,000 and the firm's cost of capital is 8 percent. And the investment alternatives are mutually exclusive. 1. What is the internal rate of return of each investment? 2. According internal rate of return, which investment should the firm make?

2. A firm has the following investment alternatives Cash inflows Year A В C 1,100 $3,600 2 1,100 3 1,100 $4,562 • Each investment costs $3,000 and the firm's cost of capital is 8 percent. And the investment alternatives are mutually exclusive. 1. What is the internal rate of return of each investment? 2. According internal rate of return, which investment should the firm make?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter12: Professional Venture Capital

Section: Chapter Questions

Problem 14DQ

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