A firm with the following investment opportunities has a capital budget of $10,000. According to the net present value technique, which investment(s) should the firm make if the firm's cost of capital is 10%? $\begin{array}{lccc} &&\text { Investment }\
& \text { A } & \text { B } & \text { C } \
\text { Cost } & \$ 10,000 & \$ 7,000 & \$ 3,000 \
\text { Cashinflow } & \$ 12.000 & \$ 8.600 & \$ 4.000
\end{array}$

Question

A firm with the following investment opportunities has a capital budget of $10,000. According to the net present value technique, which investment(s) should the firm make if the firm's cost of capital is 10%?​ $\begin{array}{lccc} &&\text { Investment }\
& \text { A } & \text { B } & \text { C } \
\text { Cost } & \$ 10,000 & \$ 7,000 & \$ 3,000 \
\text { Cashinflow } & \$ 12.000 & \$ 8.600 & \$ 4.000
\end{array}$
 ​

Quizplus · Accepted Answer

The Answer of A firm with the following investment opportunities has a capital budget of $10,000. According to the net present value technique, which investment(s) should the firm make if the firm's cost of capital is 10%?​ $\begin{array}{lccc} &&\text { Investment }\
& \text { A } & \text { B } & \text { C } \
\text { Cost } & \$ 10,000 & \$ 7,000 & \$ 3,000 \
\text { Cashinflow } & \$ 12.000 & \$ 8.600 & \$ 4.000
\end{array}$
 ​

A Firm with the Following Investment Opportunities Has a Capital