I've worked and reworked these problems but can't seem to get it.

Homework 2 1. Three projects can generate the following net cash flows (in $1,000). Calculate the NPV, assuming an 8% discount rate, and the IRR for each project. Which projects should be considered and why? Year 3 Year 4 Year 5 12 12 Project 1 Project 2 Project 3 Year 0 -50 -100 -200 Year 1 12 50 -10 Year 2 12 | 30 20 20 20 20 75 60 90 What would happen to the NPV if the discount rate increased to 12%? Which projects should be considered and why? 2. You are investing in a college education. The cost will be $12,000 at the beginning of each year for 4 years. You will also give up $30,000 in income at the end of each year because you cannot work. You expect to earn $15,000 more a year for 40 years, upon graduation, as a result of getting a college education. Are you getting a 10% rate of return on your investment in a college degree? What is the net present value of an investment in college? If it is less than 10% should you go to college? What return are you earning on it? What is your rate of return if college costs increase to $25,000 a year? What is the net present value