Draw cash flow diagrams for all problems.

1. The following cash flow is given

F0	F1	F2	F3
-100,000	344,000	-394,030	150,282

List all possible rates of return for this cash flow.

2. For the cash flow from problem #1, the MARR is 20% and the external rate is 15%. What is the modified rate of return for the project? Is this project worth doing using ROR as a measure of goodness?

3. For the cash flow from problem #1, the MARR is 20%. Is this project worth doing using PW as a measure of goodness?

4. Create a cash flow that has rates of return of 8%, 12%, and 22%.

5. The following cash flows are expected for two independent projects:

	F0	F1	F2	F3
A	-4200	2800	1000	3200
B	-5000	1200	3200	4000

Assume that the lowest MARR is 0% and PW is the measure of goodness.

a) For what range of MARR is project A preferable to B

b) For what range of MARR is project B preferable to A.