Year 0 1 2 4. On page 87 you have the following estimated cash flows, that you have an investment at the present time and a loss at the sixth year. Cash flow ($800) $450 $450 $450 $450 $450 ($1,500) Use the PV idea to explain why NPV first increases and then declines. What is this discount rate that yields the greatest NPV? Provide this work in your fourth sheet of the spreadsheet 3 4 5 6 CHAPTER 3 Measures for Evaluation of Investment Opportunities 87 B D E F G 1 SANITARY LANDFILL, INC. 2. Year Cash flow 3 0 -800 4 1 450 5 2 450 6 3 450 7 4 450 8 5 450 9 6 -1.500 10 11 First IRR 2.68%