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1 . You are considering the possibility of participating in two investments. You estimate that the investments will yield the follow cash flows ( 1

1. You are considering the possibility of participating in two investments. You estimate that the investments will yield the follow cash flows (12 points):
Year 01234
Investment A -$100,000.00 $21,800.00 $47,524.00 $38,850.87 $14,115.82
Investment B -$30,000.00 $66,000.00 $24,200.00-$93,170.00 $29,282.00
a. Write a formula that defines what the IRR for each project would be (you do not have to solve for the IRR, simply write what equation the IRR must satisfy).
b. What is the IRR for each of the two investments? You may (likely must) use your financial calculator.

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