11. You have 3 projects with the following cash flows: $22 Year Project 1 Project 2 Project 3 - $150 -827 OSN 0 40 $60 6,995 78 5.81 -6,503 -246 62 a. For which of these projects is the IRR rule reliable? b. Estimate the IRR for each project to the nearest 1%). c. What is the NPV of each project if the cost of capital is 5% 20% 50%? For which of these projects is the IRR rule reliable? (Select from the drop-down menus.) The IRR rule is reliable for (1) - Unless all of the (2) - cash flows of the projec precede the (3) -ones, the IRR rule may give the wrong answer and should not be used. Furthermore, there may be multiple IRRs or the IRR may not exist. b. Estimate the IRR for each project to the nearest 1%). The IRR for project 1 is %. (Round to the nearest integer.) The IRR for project 2 is %. (Round to the nearest integer.) The IRR for project 3 is %. (Round to the nearest integer.) c. What is the NPV of each project if the cost of capital is 5%? 20%? 50%? The NPV for project 1 for a cost of capital of 5% is $ (Round to the nearest cent.) The NPV for project 1 for a cost of capital of 20% is $ (Round to the nearest cent.) The NPV for project 1 for a cost of capital of 50% is $ (Round to the nearest cent.) The NPV for project 2 for a cost of capital of 5% is $ (Round to the nearest cent.) The NPV for project 2 for a cost of capital of 20% is (Round to the nearest cent.) (Round to the nearest cent.) The NPV for project 2 for a cost of capital of 50% is $ The NPV for project 3 for a cost of capital of 5% is $ The NPV for project 3 for a cost of capital of 20% is s (Round to the nearest cent.) (Round to the nearest cent.) The NPV for project 3 for a cost of capital of 50% is $ (Round to the nearest cent.) (1) O O O (3) O project 3 project 2 project 1 (2) O positive O negative positive negative