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You have 3 projects with the following cash flows: Year 0 1 2 3 4 Project 1 -150 20 40 60 80 Project 2 -825

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You have 3 projects with the following cash flows: Year 0 1 2 3 4 Project 1 -150 20 40 60 80 Project 2 -825 0 0 7000 -6500 -245 a. Project 3 20 40 60 80 For which of these projects is the IRR rule reliable? b. Estimate the IRR for each project (to the nearest 1%). What is the NPV of each project if the cost of capital is 5%? 20%? 50%? c

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