1 Discount rates, IRR and NPV analysis LO 21 Assume that you are asked to analyse the following three projects: Cash flow ($) Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 A -200000 20000 20000 20000 20000 220 000 B -200000 52760 52760 52760 52 760 52 760 -200000 322 100 Construct a spreadsheet, and associated graphs, that will enable you to analyse the impact of different discount rates on the NPV of a project as well as calculate the IRR for a project (an example is provided in Figure 5.2). al Rank the three projects assuming the appropriate discount rate is: i) 6 per cent per annum ii) 10 per cent per annum iii) 15 per cent per annum b) Calculate the IRR for each of the projects, then rank them