1) A project has a Net Present Value (NPV) of 14,560 when a discount rate of 10% is used and the same project has a NPV of (1,200) when a discount rate of 22% is used, the actual internal rate of return of the project (to the nearest whole number) is:

2) Western company is considering investing in a new project. The project will need an initial investment of 1,200,000 and generate net cash flows of 600,000 for three years. Calculate the NPV if the cost of capital is 15%.

3) The initial investment (Yr. 0) on a project was 10,000. The cash flows are as follows: Year 1 5,000, Year 2 4,500, Year 3 3,500 and Year 4 3,000. What is the Accounting Rate of Return (ARR) if calculated by average annual profits divided by average capital invested?