A firm is planning an investment in a project. The initial investment is 240,000. The project returns $100.000 cash at the end of one year. At the end of second year the project returns cash of amount SF. These are only cash flows from the project. If the IRR for the project is 10%, what is the amount $F? Your Answer: Answer Question 2 (1 point) This question will require you to use Excel's IRR function. A firm invests $100,000 in a project today. It receives $15,000 a year from now. $20,000 two years from now, and $95.000 three years from now and nothing more. What is the IRR of the project? The format of Excel's IRR function is =IRR(aX:a Y.Z) Where ax:aY are cells ax to ay which have cash flows entered into them. The initial nvestment is a negative cash flow so it should have a negative sign. Z is a "guess" IRR, usually you can set to 0.1 (which is 10%). Answer should be a number given as a %. That is, for example 3.18% should be answered as 3.18 rather than 3.18% or 0.0318 Address 7:21 PM This question will require you to use Excel's Rate function. You can use the IRR function, but in case of an Annuity with a large number of periods, it can become cumbersome. A firm purchases Treasury bonds for $250,000. The Face Value of the bonds are $300,000. It receives yearly coupons of $12,000 for 8 years. At the end of 8 years the firm receives the Face Value of $300,000 plus the coupon payment for the 8th year, and then the bonds are extinguished. What is the IRR from the investment in the bonds? Here is an example of the format of Excel's RATE function: =RATE(3,10,-100,150,0,0.1) 3 is the number of periods, 10 the periodic payments, -100 the time 0 cash flow, and 150 the additional cash flow on the last period. The 0.is format saying the payments occur at the end of every period, and 0.10 is the initial guess for the return. Answer should be a number given as a %. That is, for example 3.18% should be answered as 3.18 rather than 3.18% or 0.0318 Address