For each of the following cash flows, find their net present value (in year 0) for an annual discount rate of 10% and their internal rate of return. Write each NPV in dollars and each IRR in percent using two decimals.

Blanks 1-2/A. -$300 in year 1, $100 in year 2, $400 in year 3 (write NPV in Blank 1, IRR in Blank 2)

Blanks 3-4/B. -$200 in year 1, $200 in year 2, $200 in year 3 (write NPV in Blank 3, IRR in Blank 4)

Blanks 5-6/C. -$600 in year 1, $900 in year 3 (write NPV in Blank 5, IRR in Blank 6)

Blanks 7-8/D. $500 in year 1, -$200 in year 2, -$200 in year 3 (write NPV in Blank 7, IRR in Blank 8)

Blanks 9-10 If your company could choose one of these for a future project's payment cycle, which one would you recommend based on NPVs (Blank 9) or IRRs (Blank 10): A, B, C or D? (they could be the same)

Question 18 options:

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