1. Starting from the Excel spreadsheet and using the =IRR(values,[guess]) Excel function, calculate the Internal Rate of Return (IRR) for Project A and for Project B. Leave the guess field empty.

1 2 Year 3 0 4 1 5 2 6 3 7 4 8 5 9 Internal Rate of Return 10 IRR Guess O 11 IRR Guess 1 12 Net Present Value at Rate of... 13 5% 14 10% 15 15% B C Cash Flows Project A Project B S (15,000) S (15,000) S 4,600 S 10,000 S 4,600 S 15,000 S 4,600 S 20,000 S 4,600 S 10,000 S 4,600 S (50,000)