1) You are going to choose one of two investments. Both investments cost £80000, but investment A pays £35000 a year for 4 years and investment B pays £30000 a year for five years. If your required...

1) You are going to choose one of two investments. Both investments cost £80000, but investment A pays £35000 a year for 4 years and investment B pays £30000 a year for five years. If your required return is 13% which should you choose?

a. A because it pays back sooner

b. A because its IRR exceeds 13%

c. A because it has a higher IRR

d. B because its IRR exceeds 13%

e. B because it has a higher NPV