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Year 0 1 2 3 4 Project 1 - 1 5 2 2 1 4 1 5 9 7 9 Project 2 - 8 2
Year
Project
Project
Project
a For which of these projects is the IRR rule reliable?
The IRR rule for Unless all of the cash flows of the project precede the ones, the IRR rule may give the wrong answer and should not be used. Furthermore, there may be multiple IRRs or the IRR may not exist.
b Estimate the IRR for each project to the nearest round final answers to the nearest
The IRR for project is
The IRR for project is
The IRR for project is
c What is the NPV for each project if the cost of capital is round final answers to the nearest cent
NPV for project cost of capital and
NPV for project cost of capital and
NPV for project cost of capital and
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