According to the feasibility of the project you plan to invest 7,000,000 TL, the net earnings you will gain in the coming years are given below:

1. year 1.800.000

2. year 2.600.000

3. year 2.900.000

4. year 3.200.000

5. year 2.800.000

a) If the loan interest rate (including taxes) is 16% and fixed, will you accept to make this investment?

b) What would you calculate the internal rate of return for the project?

c) If you assume that the loan interest rates (including taxes) will be 16%, 18%, 20%, 20% and 17% respectively in the coming years, how much would you calculate the net present value of the project?