NPV exercises related to exericise 12.4 questions 1,2,3 that need to be answered please. all 3

12.4 questions that need to be answered. Instead of finding NPV we need to find IRR for projects 1,2,3

Exercises 1. Calculate the IRR for the projects listed in NPV exercises. 2. Which has the highest IRR? 3. If our hurdle rate is 10%, which should we accept? Exercises 1. Calculate the NPV for the following projects with a discount rate of 12%: a. Project 1 costs $100,000 and earns $50,000 each year for three years. b. Project 2 costs $200,000 and earns $150,000 in the first year, and then $75,000 for each of the next two years. c. Project 3 costs $25,000 and earns $20,000 each year for three years. 2. If the projects are mutually exclusive, which should we accept? 3. If the projects are independent, which should we accept