Solution-Should the firm make any of these investments

Should the firm make any of these investments

Reference no: EM131041372

A firm has the following investment alternatives:

	Cash flows
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 cost of capital is 10 percent.

(A) What is each investment rate of return?

(B) Should the firm make any of these investments?

(D) Should the firm make any of these investments?

Reference no: EM131041372

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Should the firm make any of these investments

Reference no: EM131041372

Reference no: EM131041372

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