90.2K
Verified Solution
Link Copied!
Year 0 1 2 3 4 Project 1 -$151 $20 $39 $58 $82 Project 2 -826 0 0 7,006 -6,502 Project 3 20 39 61 80 -244
a. Estimate the IRR for each project (to the nearest 1%).
The IRR for project 1 is
The IRR for project 2 is
The IRR for project 3 is
b. What is the NPV of each project if the cost of capital is 5%?
The NPV for project 1 for a cost of capital of 5% is
The NPV for project 2 for a cost of capital of 5% is
The NPV for project 3 for a cost of capital of 5% is
Answer & Explanation
Solved by verified expert