You have 3 projects with the following cash flows: Year - $148 - 826 19 $59 6,997 82 $80 - 6,508 -246 Project 1 $20 $40 Project 2 Project 3 39 59 a. For which of these projects is t 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%? he IRR rule reliable? ones, the IRR rule may give the wrong answer and The IRR rule is reliable for project 1 . Unless all of the negative cash flows of the project precede the positive 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 11 %. (Round to the nearest integer.) The IRR for project 2 is 11 %. (Round to the nearest integer.) The IRR for project 3 is 11 %. (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.)