(Related to Checkpoint 11.1 and Checkpoint 11.4) (IRR and NPV calculation)The cash flows for three independent projects are found below:

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.

a.Calculate the IRR for each of the projects.

b.If the discount rate for all three projects is

17

percent,

which project or projects would you want to undertake?

c.What is the net present value of each of the projects where the appropriate discount rate is

17

percent? Project A

Project B

Project C

Year 0 (Initial investment)

$(55,000)

$(110,000)

$(420,000)

Year 1

$9,000

$29,000

$250,000

Year 2

16,000

29,000

250,000

Year 3

22,000

29,000

250,000

Year 4

27,000

29,000

Year 5

29,000

29,000