### Net Present Value, Break-Even Analysis, Leverage

A firm has three investment opportunities. Each costs $1,000, and the firm's cost of capital is 10 percent. The cash inflow of each investment is as follows: Cash Inflow A B C Year 1 300 500 100 2 300 400 200 3 300 200 400 4 300 100 500 a. If the net present value method is used,