Case 16: The Investment Detective Part A. Before doing any calculations, can we rank the projects simply by inspecting the cash flows ? Which of the projects, 7 or 8, is more attractive ? 8 -2000 u Initial Investment Year 6 -2000 2200 -2000 330 330 330 -2000 1666 334 165 -2000 160 200 7 -2000 1200 900 300 90 70 -2000 -350 -60 350 60 330 395 330 330 330 1000 5 -2000 280 280 280 280 280 280 280 280 280 280 280 280 280 280 280 350 700 1200 2250 432 440 442 444 446 448 450 451 451 452 -2000 10000 NPV $0.00 $165.04 $182.98 $73.09 ($85.45) $7,090.91 $228.22 $129.70 Choose Project 8. Although Project 3 has the highest NPV, its cash flow is poor. Part B. Compute the IRR of each project, assuming a cost of capital of 10%. Rank the projects on the basis of IRR