1. What is the Internal Rate of Return for the Chinatown project? Is it 7.7%, 5.4% or 6.4%?
2. 

The following is a report on the estimated cash flows for 3 projects set up at 3 different locations. PROJECT Vice City San Andreas Chinatown t: CASH FLOWS 0 1 2 3 4 -100 80 40 5 (beta ) 1.5 0.7 0.5 r (cost of capital) -100 10 10 10 10 100 0 11.66 0 -100 30 30 30 30 0 Values are in million US$. Annual risk-free rate = 1.5%. Market risk premium 6 3.6 3 NPV 9.38 4 11.51 4.5%