For the above information, answer the following questions;

a) What are the NPVs for 11%, 13% and 15% respectively?

b) Based on your above (question 'a'); what is the approximate IRR and why?

c) Calculate the exact IRR with excel!

Year (n)0 Undiscounted $600,000 $200,000 $200,000 $200,000 $200,000 cash flow 3 3 4 l DCF @ 11% DCF @11% DCF @ 13% DCF @ 13% 1 l I DCF @ 15% | pcF @15%