1. You are evaluating investing in a private equity fund and estimate that it will yield the following cash flows: Year Cashflow 0 -$1,000,000 1 3 4 5 2 $120,000 $288,000 $345,600 $622,080 $497,664 a. What is the expected IRR of the fund? You will need to use your financial calculator (or excel) to solve this problem. b. On average, private equity funds that invest in similar businesses earn a rate of return of 26%. Should you invest in this fund (Hint: no calculations are needed).