You have 3 projects with the following cash flows: Year 0 1 2 3 4 Project 1

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You have 3 projects with the following cash flows:

Year 0 1 2 3 4 Project 1 -152 19 41 58 81 Project 2 -823 0 0 6995 -6496 Project 3 21 38 62 81 -244

a. For which of these projects is the IRR rule reliable?

b. Estimate the IRR for each project (to the nearest 1%).

c. What is the NPV of each project if the cost of capital is 5%? 20%? 50%?

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Corporate Finance

ISBN: 9781292304151

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Jun 16, 2024 04:19 AM

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You have 3 projects with the following cash flows: Year 0 1 2 3 4 Project 1

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Corporate Finance

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