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Year Net Cash Flow 4. Investment = $1,230 1 2 3 $800 $200 $400 Compute the internal rate of return for this project. 8. Two

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Year Net Cash Flow 4. Investment = $1,230 1 2 3 $800 $200 $400 Compute the internal rate of return for this project. 8. Two mutually exclusive investment projects have the following forecasted cash flows: Year 0 1 2 Project A -$20,000 +$10,000 +$10,000 +$10,000 +$10,000 Project B --$20,000 0 0 0 + $60,000 3 4 a. Compute the internal rate of return for each project. b. Compute the net present value for each project if the firm has a 10% cost of capital. C. Which project should be adopted? Why

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