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You have 3 projects with the following cash flows: $20 $40 Year Project 1 Project 2 Project 3 - $150 - 825 $60 7,000 0
You have 3 projects with the following cash flows: $20 $40 Year Project 1 Project 2 Project 3 - $150 - 825 $60 7,000 0 60 $80 - 6,500 - 245 20 40 80 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%
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