homework 6.8

(Related to Checkpoint 11.1 and Checkpoint 11.4) (IRR and NPV calculation) The cash flows for three independent projects are found below. FIR a. Calculate the IRR for each of the projects b. If the discount rate for all three projects is 10 percent, which project or projects would you want to undertake? c. What is the net present value of each of the projects where the appropriate discount rate is 10 percent? Year 0 (Initial investment) Year 1 Year 2 Year 3 Year 4 Year 5 Project A $(70,000) $9.000 14,000 21,000 26.000 33,000 Project B S(120,000) $28,000 28,000 28,000 28,000 28.000 Project C $(460,000) $220,000 220,000 220,000