Consider the investment with the following cash flows.

Year

$0123$

Cash Flow

$-6,50019,500-12,000-3,000$

a$)(10$p$)$ Do a Graphical Analysis to identify the roots for the equation NPW$($i$)=0.$ Plot the NPW$($i$)$ for a reasonably large range of interest rates. Interpret the graph. How many roots exist? What can you say about the rate of return of this project?

b$)(10$p$)$ Apply Modified Internal Rate of Return $($MIRR$)$ method using an external financing rate of $6\%$ and an external investing rate of $12\%.$ Is the project attractive if MARR is $12\%?$ Compute MIRR analytically first, then verify your answer using MIRR function of Excel.

c$)(10$p$)$ Apply External Rate of Return $($ERR$)$ method using MARR of $12\%.$ Is the project attractive?