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You have 3 projects with the following cash flows: 1 Year Project 1 Project 2 Project 3 0 - $152 -827 19 $21 0 39
You have 3 projects with the following cash flows: 1 Year Project 1 Project 2 Project 3 0 - $152 -827 19 $21 0 39 2 $40 0 62 3 $59 7,002 80 4 $79 -6,497 - 243 a. For which of these projects is the IRR rule reliable? b. Estimate the IRR for each project (to the nearest 1%). c. What is the NPV of each project if the cost of capital is 5%? 20%? 50%? a. For which of these projects is the IRR rule reliable? (Select from the drop-down menus.) The IRR rule is reliable 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
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