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You have 3 projects with the following cash flows: (Click on the following icon in order to copy its contents into a spreadsheet.) Year Project

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You have 3 projects with the following cash flows: (Click on the following icon in order to copy its contents into a spreadsheet.) Year Project 1 Project 2 Project 3 0 - $149 - 825 19 1 $22 0 41 2 $41 0 58 3 $62 6,992 78 4 $78 - 6.505 - 245 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.) Vones, the IRR rule may give the wrong answer The IRR rule is reliable for V. Unless all of the V cash flows of the project precede the and should not be used. Furthermore, there may be multiple IRRs or 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.)

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