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Problem #2: The following table summarizes cash flows for a project: Year Cash Flow at End of Year -$5000 3000 4000 - 1000 (a) Write
Problem #2: The following table summarizes cash flows for a project: Year Cash Flow at End of Year -$5000 3000 4000 - 1000 (a) Write out the expression you need to solve to find the IRR(s) for this set of cash flows. Do not solve ? You have found that an IRR of 14.58 percent solves the expression in part (a). Compute the project balances for each year Year Project Balance 3 (c) What will be the external rate of return (ERR) using the appropriate rate of return method
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