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The following table summarizes cash flows for a project: Year 0 1 Cash Flow at End of Year $ - 5,500 $3,500 $4,250 2
The following table summarizes cash flows for a project: Year 0 1 Cash Flow at End of Year $ - 5,500 $3,500 $4,250 2 3 $ -1,500 a. Choose the appropriate expression you need to solve to find the IRR(s) for this set of cash flows. Do not solve. A. $ 5,500+ $3,500(P/F, i, 1)+ $4,250(P/F, i, 2) - $ 1,500(P/F, i, 3) = 0 B. $ 5,500+ $3,500(A/P, i, 1) + $4,250(A/P, i, 2) - $1,500(A/P, i, 3) = 0 OC. $3,500+ $3,500(P/F, i, 1) + $3,500(P/F, i, 2) - $3,500(P/F, i, 3) = 5 D. There is no expression that can be used. b. What is the maximum number of solutions for the IRR that could be found in part (a)? The maximum number of solutions for the IRR is (Round to the nearest whole number as needed.) c. You have found that an IRR of 14.68 percent solves the expression in part (a). Compute the project balances for each year. Year 0 1 2 3 Project Balance $ GA (Type an integer or decimal rounded to two decimal places as needed.)
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