r= 15%

18.-In the problem below, you are going to pick up the discount rate for both problems following the rule used in class and solve them using the equation given in class. Explain the problems financially. The example below represents two projects 1 and 2 where you can see that there is cash outflow and also there are some cash inflow getting into the company. Considering that the cash flows are taken place at the end of each year. Find out the IRR for these two projects. The cost of capital is 10 % money from the bank) Project #1 -1000 500 400 300 100 0 1 | 2 3 4 -1000 100 300 400 600 Project 2 0 1 2 3 4