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Q1) A redevelopment project is planned in the industrial zone of the city. In this case, where immediate investment is required, the expectations from the

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Q1) A redevelopment project is planned in the industrial zone of the city. In this case, where immediate investment is required, the expectations from the company that will take over the project are as follows. It should lift existing buildings over a four-year period and invest 5,300,000 TL in new construction at the end of the fourth year. It will collect all revenues and is expected to pay all expenses for a 10-year period. Meanwhile, all projects and properties will return to the city. Use the following data for the net cash flow values. NET CASH FLOW (TL) 500,000 300,000 100,000 5,300,000 503,000 523,000 543,000 563,000 583,000 603,000 a) Generate the PW as the interest rate is not given you should determine whether multiple IRRS exist. b) According to the result that you obtain in part(a), check if there exist multiple IRR; then use the ERR method. In this part, to evaluate the external rate of return you should use e= 5% per year.! Q1) A redevelopment project is planned in the industrial zone of the city. In this case, where immediate investment is required, the expectations from the company that will take over the project are as follows. It should lift existing buildings over a four-year period and invest 5,300,000 $ in new construction at the end of the fourth year. It will collect all revenues and is expected to pay all expenses for a 10-year period. Meanwhile, all projects and properties will return to the city. Use the following data for the net cash flow values. NET CASH FLOW ($) 500,000 300,000 100,000 5,300,000 503,000 523,000 543,000 563,000 583,000 603,000 a) Generate the PW as the interest rate is not given you should determine whether multiple IRRS exist. b) According to the result that you obtain in part(a), check if there exist multiple IRR; then use the ERR method. In this part, to evaluate the external rate of return you should use e= 5% per year

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