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You have 3 projects with the following cash flows: Year Project 1 Project 2 Project 3 0 -$151 -824 22 1 2 3 4

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You have 3 projects with the following cash flows: Year Project 1 Project 2 Project 3 0 -$151 -824 22 1 2 3 4 $19 $42 $59 $82 0 0 7,002 - 6,498 41 59 80 -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%?

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