You may use Excel spreadsheet in order to perform the necessary computations for this questions. The computation of the IRR is performed using the function: =IRR(range, guess) where range refers to the range where you have inserted the data on the spreadsheet and guess refers to an initial guess as to what might the IRR be [you may guess any number]. 1. Consider a project with the following expected cash flows: Year Cash flow 0 - $549,000 1 $91,000 2 $182,000 3 $374,000 a. If the discount rate is 0%, what is the project's net present value? b. If the discount rate is 5%, what is the project's net present value? c. What is this project's internal rate of return? 2. Consider a project with the expected cash flows: Year Cash flow 0 - $51,000 1 $51,000 2 $87,000 3 - $87,000 a. What is this project's internal rate of return (IRR)? b. If the discount rate is 4%, what is this project's net present value? 3. A project requiring a $1.26 million investment has a profitability index of 0.96. What is its net present value? 4. Suppose that I am trying to borrow money from you to finance my business. And suppose that I promise to repay you in two installments, one payment in two years of $15,000 and one payment in four years for $10,000. If your opportunity cost of funds is 10%, how much are you willing to lend me? 5. What is the effective annual rate of interest for a loan that has an 15% annual percentage rate, compounded monthly