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1 Investment required Present value of cash inflows Net present value Life of the project Internal rate of return $ (270,000) 336,140 $ 66,140

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1 Investment required Present value of cash inflows Net present value Life of the project Internal rate of return $ (270,000) 336,140 $ 66,140 6 years 18% $ (450,000) 522,970 $ 72,970 Project Number 2 3 $ (360,000) 433,400 $ 73,400 3 years 19% 12 14% years 4 $ (480,000) 567,270 $ 87,270 6 years 16%

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