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4. Green Earth Constructions has been given the following project to consider: Initial Outlay -8.5M Year 1 4.5M Year 2 -2.7M Year 3 4.8M Year

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4. Green Earth Constructions has been given the following project to consider: Initial Outlay -8.5M Year 1 4.5M Year 2 -2.7M Year 3 4.8M Year 4 6.7M Based on your knowledge in financial management, what problem may arise when you try to appraise this project using the IRR method? Why does this problem occur? And what suggestion(s) would be you give to the firm to overcome the problem? (No calculation is required)

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