The “Logistics and Transportation Star” Ltd is considering its alternative investments comprising its investment opportunity set (Investment A - Investment Z). The investments with their relevant cash flows are as follows: Year Investment A Investment B Investment C Investment D Investment E Investment Ζ 0 -600,000,00 € -480,000.00 € -360,000.00 € -240,000.00 € -720,000.00 € -840,000.00 € 1 168,000,00 € 120,000.00 € 180,000.00 € 48,000.00 € 240,000.00 € 300,000.00 € 2 168,000,00 € 120,000.00 € 84,000.00 € 48,000.00 € 240,000.00 € 240,000.00 € 3 180,000,00 € 180,000.00 € 84,000.00 € 84,000.00 € 240,000.00 € 240,000.00 € 4 180,000,00 € 180,000.00 € 84,000.00 € 84,000.00 € 192,000.00 € 168,000.00 € 5 190,000,00 € 190,000.00 € 94,000.00 € 94,000.00 € 190,000.00 € 178,000.00 € You are asked to evaluate the above investments and answer the following questions assuming that the firm’s cost of capital is 10%. a. Rank the investments from the best to the worst according to their Net Present Value (NPV) and Internal Rate of Return (IRR). Demonstrate your calculations  b. If Logistics and Transportation Star can invest up to 1,440,000€, which are the investments that it should prefer? Explain your recommendations.

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