Can you complete these two questions for me please.

qrkgre109
timer Asked: Sep 28th, 2015

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A firm has five identified capital projects they could fund in the upcoming year. Each project has a initial capital cost of $5,000,000, however the firm only has $15,000,000 allocated for capital projects in the current year. The company needs to decide which projects to fund. The firms initial cost of capital (discount rate) is 8%. Projects Year 1 2 3 4 5 A $1,100 $1,100 $1,100 $1,100 $1,100 Cash Flows ($ in thousands) B C D $6,000 -$1,000 -$1,000 $2,500 -$2,000 $3,500 -$3,000 $2,750 -$2,200 $1,000 E $500 $1,500 $3,000 $3,500 $4,500 1. What is the internal rate of return on each investment? 2. According to the internal rates of return, which investment(s) should the firm make? Why?
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