ne ve U 11. TI Calculator Graded Problem Set You are evaluating a proposed project for your company. The project is expected to generate the following end-of-year cash flows: 0 1 2 3 5 6 7 8 + -$3,000 $300 $500 $600 $600 $800 $800 $800 $400 You have been told you should evaluate this project with an interest rate of 9%. What is the project's NPV? $235.97 $185.79 $151.80 $219.77 $135.60 Your group leader has now told you that the risk of the project was understated before. As a result, she tells you to recalculate the project's N an 11% interest rate. What is the new NPV? -$109.76 me Value of Money 2 Assignment Your group leader has now told you that the risk of the project was understated before. As a result, she tells you to recalculate the project's NPV with an 11% interest rate. What is the new NPV? -$109.76 -$104.13 - $22.97 -$66.36 -$28.59 Accept/reject Added/lost When the project was first evaluated at 9%, you would have advised that the company the project because it value for the company. But now with an 11% interest rate, you will advise the company to the project because it value for the company Accept/reject Loses/adds Calculate the project's internal rate of return (IRR), 12.45% 10.81% 15.08% 10.76% 10.01%