Suppose you are the government and have to build a day care centre for old people. Suppose this project has the following cash flows: An immediate cash outlay of EUR 6000 followed by inflows of EUR 2950 in year 1, EUR 3250 in year 2, and zero thereafter. What is the IRR of this project? (express your answer as a decimal, e.g. 0.78 and not as a percentage, i.e. 78%; round to the second digit after the decimal point) Answer If the discount rate is 2.5, the benefit-cost ratio will equal approximately (express your answer as a decimal, e.g. 0.78 and not as a percentage, i.e. 78%; round to the third digit after the decimal point)