You are evaluating three projects which have following characteristics. The risk-free rate is 5% and a market risk premium of 10 percent. Assume that all projects are funded by 100 per cent equity. IRR NPV Project initial Cash beta investment inflow (t=0) 1.50 ($100,000) 120,00 1.00 ($100,000) 110,00 2.5 ($100,000) 130,00 A B a) Calculate internal rate of return and NPV for each of the three projects. b) Using the CAPM model calculate the cost of equity for each of the projects. c) Determine whether the projects are considered good, bad or fair