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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 01234
Project 1-15221415979
Project 2-823007006-6492
Project 320396179-243
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 1%).(round final answers to the nearest 1%).
The IRR for project 1 is _____%
The IRR for project 2 is _____%
The IRR for project 3 is _____%
c.) What is the NPV for each project if the cost of capital is 5%?20%?50%?(round final answers to the nearest cent)
NPV for project 1, cost of capital 5%,20%, and 50%
NPV for project 2, cost of capital 5%,20%, and 50%
NPV for project 3, cost of capital 5%,20%, and 50%

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