#1
A firm evaluates all of its projects by applying the IRR rule.
A project under consideration has the following cash flows:
Year	0	1	2	3
Cash Flows	-$28,700.00	$12,700.00	$15,700.00	$11,700.00
If the required return is	15%
What is the IRR for this Project?
Year	0	1	2	3
Cash Flows	-$28,700.00	$12,700.00	$15,700.00	$11,700.00
PVIF
PV
Prove a zero PV
IRR =	19.00%
IRR =	18.00%
i
i	20.00%
IRR=	20.00%
IRR =	17.00%
#2
A firm evaluates all of its projects by applying the NPV decision rule.
A project under consideration has the following cash flows:
Year	0	1	2	3
Cash Flows	-$28,300.00	$12,300.00	$15,300.00	$11,300.00
What is the NPV for the project if the required return is			11%
Year	0	1	2	3
Cash Flows	-$28,300.00	$12,300.00	$15,300.00	$11,300.00
PVIF
NPV
NPV =	$ 2,461.37
NPV =	$ 3,461.37
NPV =	$ 4,361.37
NPV =	$ 3,061.37