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You have 3 projects with the following cash flows: (Click on the following icon Q in order to copy its contents into a spreadshee begin{tabular}{lrrrrrr}

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You have 3 projects with the following cash flows: (Click on the following icon Q in order to copy its contents into a spreadshee \begin{tabular}{lrrrrrr} Year & 0 & 1 & 2 & 3 & 4 \\ \hline Project 1 & $150 & $20 & $40 & $60 & $80 \\ Project 2 & 825 & 0 & 0 & 7,000 & 6,500 \\ Project 3 & 20 & 40 & 60 & 80 & 245 \\ \hline \end{tabular} 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 of the IRR may not exist. b. Estimate the IRR for each project (to the nearest 1% ). The IRR for project 1 is \%. (Round to the nearest integer.) The IRR for project 2 is \%. (Round to the nearest integer.) The IRR for project 3 is \%. (Round to the nearest integer.) c. What is the NPV of each project if the cost of capital is 5%?20%?50% ? The NPV for project 1 for a cost of capital of 5% is $. (Round to the nearest cent.) The NPV for project 1ffor a cost of capital of 20% is $. (Round to the nearest cent.) The NPV for project 1 for a cost of capital of 50% is $. (Round to the nearest cent.) The NPV for project 2 for a cost of capital of 5% is $. (Round to the nearest cent.) The NPV for project 2 for a cost of capital of 20% is . (Round to the nearest cent.) The NPV for project 2 for a cost of capital of 50% is $. (Round to the nearest cent.) The NPV for project 3 for a cost of capital of 5% is $ (Round to the nearest cent.) The NPV for project 3 for a cost of capital of 20% is $. (Round to the nearest cent.) The NPV for project 3 for a cost of capital of 50% is $. (Round to the nearest cent.)

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