Your client has recently invested P75,000,000 in a new condominium project. Below is a summary of the expected annual cash flows for phases 1,2, and 3. (Due to be finished in years 3, 5, and 7 respectively)

Phase	End of Year	Cash Flows
1	3	27,500,000
2	5	42,500,000
3	7	67,500,000

a. What is the internal rate of return on their investment, expressed as an effective annual rate?

b. Due to a major earthquake in the area, Phase 3 was delayed and completion did not occur until the end of year 8. How does this affect your clients internal rate of return (IRR) on her investment?