Problem 78 (Easy-level). Estimates for a construction project appear in the following table:

	Optimist Estimate	Most probable estimate	Pessimist
Cost ($)	60,000	80,000	120,000
Annual benefit ($)	16,000	15,000	13,500
Useful life (years)	10	10	10
Residual value	0	0	0

a. Calculate the weighted average for costs and benefits, assigning 4 times more weight to the most probable estimate.

b. Calculate the average internal rate of return.

Weighted Average Cost = $____________ Weighted Average Annual Profits = $_______ Average internal rate of return = ____%

To receive your credit, results must match your submitted procedures.