Multiple IRRs Consider investment projects L through O and answer the following questions.

a. What is the maximum number of IRRs for each project? Why?

b. Draw an NPV profile for Project L by considering the following discount rates: 0%, 13%, 25%, 29%, 33.2%, 39%, 43%, 53%, 66.7%, 87%.

c. Calculate the MIRR to three decimal places for Project L and advise whether the project is acceptable at a cost of capital of 11%.

d. Draw an NPV profile for Project M by considering the following discount rates: 0%, 10%, 20%, 30%, 40%, 50%.

e. Calculate the MIRR to three decimal places for Project M and advise whether the project is acceptable at a cost of capital of 11%.

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Year 0 1 +WNL 2 3 4 Project L -$ 3,024 17,172 -36,420 34,200 - 12,000 Project M Project N Cash flows (CF) -$ 5,000 12,500 -7,700 -$1,365 1,050 1,050 1,050 -1,800 Project O $1,000 -4,600 7,910 -6,026 1,716