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3. Find the IRR of the investment in below. Your cost of capital is 6%. Should you invest? Justify your answer. 4. Your firm is

3. Find the IRR of the investment in below. Your cost of capital is 6%. Should you invest? Justify your answer.

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4. Your firm is considering another investment that has an internal rate of return of 0.061. Should your firm invest in this project or the project in Problem 3? Justify your answer.

Net Cash Outlay 154,000 Cash Flow 1 70,234 50,225 Cash Flow 2 Cash Flow 3 49,468

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