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Problem 2: Consider the cash flow sequences provided in Table 2? (a) Classify the sequences as either simple or nonsimple investments. Which of the projects

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Problem 2: Consider the cash flow sequences provided in Table 2? (a) Classify the sequences as either simple or nonsimple investments. Which of the projects is a simple-borrowing cash flow and does not represent an investment? (15 points), (b) at a 45% IRR, which project would you choose as the most feasible? Justify your answer. (15 points), and (c) If you want project B to be equally as feasible to project A, what value of X you would need to add at year 4 to project B, if the value at year 2 is changed to +$5,030 ? Assume an IRR of 40%. (20 points). Table 2: Cash flow for Problem 2

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