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Please Show ALL work and formulas used 1) Virgin Pacific Airlines has a 2-year project with the following cash flows: I = $1,000, C 1

Please Show ALL work and formulas used

1)

Virgin Pacific Airlines has a 2-year project with the following cash flows: I = $1,000, C1 = +$2,391, and C2 = +$2,803. Find the value of the SMALLEST IRR of this project. Note: If you wish, you may use the calculator to find one of the IRRs, and then use a method given in your class notes to find the other one, so you can determine which one is the smallest number. Give the answer as a percent with two decimals; e.g., -23.24 and, as always, do not include symbols in your answer.

Question 2

A 2-period investment project has the following cash flows at times t = 0, 1, and 2: -16, 24, and 41, respectively. Complete the triangle for this project and then answer the following question pertaining to the bottom row of numbers; i.e., the row below the horizontal line.

Reading the numbers of the bottom row of the triangle from left to right, what is the value of the second number?

Question 3

A 3-period investment project has the following cash flows at times t = 0, 1, 2, and 3: -22, 16, -38, and 47 respectively. Complete the triangle for this project and then answer the following question pertaining to the bottom row of numbers; i.e., the row below the horizontal line.

Reading the numbers of the bottom row of the triangle from left to right, what is the value of the third number?

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