20. You have 3 projects with the following cash flows: 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%? Year 0 1 2 3 4 -150 Project 1 20 40 80 60 Project 2 |--825 0 0 7000 -6500-6500 20 Project 3 40 60 80 -245 5. River Enterprises has $500 million in debt and 20 million shares of equity outstanding. Its excess cash reserves are $15 million. They are expected to generate $200 million in free cash flows next year with a growth rate of 2% per year in perpetuity. River Enterprises' cost of equity capital is 12%. After analyzing the company, you believe that the growth rate should be 3% instead of 2%. How much higher (in dollars) would the price per share of stock be if you are right