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The cash flows for three independent projects are found below: Year 0 (Initial investment) $(50,000) $(100,000) $(450,000) Year 1 $10,000 $25,000 $200,000 Year 2 15

The cash flows for three independent projects are found below:

Year 0 (Initial investment)

$(50,000)

$(100,000)

$(450,000)

Year 1

$10,000

$25,000

$200,000

Year 2

15 ,000

25 ,000

200 ,000

Year 3

20 ,000

25 ,000

200 ,000

Year 4

25 ,000

25 ,000

Year 5

30,000

25 ,000

a.Calculate the IRR for each of the projects.

b.If the discount rate for all three projects is 10% 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 10%?

a.The IRR of Project A is ?(Round to two decimal places.)

The IRR of Project B is ? (Round to two decimal places.)

The IRR of Project C is %. (Round to two decimal places.)

b.If the discount rate for all three projects is 10% which project or projects would you want to undertake?

c.The net present value of Project A where the appropriate discount rate is 10% .....? (Round to the nearest dollar.)

The net present value of Project B where the appropriate discount rate is 10% is.....? (Round to the nearest dollar.)

The net present value of Project C where the appropriate discount rate is 10%......?(Round to the nearest dollar.)

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