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?