1. Table 1 shows three alternative options for a $20k up-front investment.

Table 1.	Year	Cow/Calf	Grain	Irrigated
	0	-$20,000	-$20,000	-$20,000
	1	$2,000	$5,800	$10,000
	2	$4,000	$5,800	$8,000
	3	$6,000	$5,800	$6,000
	4	$8,000	$5,800	$3,000
	5	$10,000	$5,800	$1,000

What is the IRR of the Cow/Calf investment? Enter your answer as a percentage to the nearest whole number (e.g., 7%)

2.What is the IRR of the Grain investment? Enter your answer as a percentage to the nearest whole number (e.g., 7%)

3.What is the IRR of the Irrigation investment? Enter your answer as a percentage to the nearest whole number (e.g., 7%)

4.which investment has the largest TOTAL NET RETURN?

5. Which investment would be preferred based on the IRR method?

6. Which of the following are criticisms of IRR? Select all that apply.

		It does not account for the time value of money.
		It can end up assuming returns can be reinvested at unrealistic rates.
		It cannot handle investments with more than one period of negative net returns.
		It cannot be used to determine if an investment will be adopted by an investor or not.

7. Suppose you analyzed a $40k investment using a 7% discount rate, 2% inflation rate, and 3% reinvestment rate and got the following results in Excel.

	$40k Investment
Year	Revenues	Costs	Net Return	PV of Returns	FV of Returns
0	$0	$40,000	-$40,000	-$40,000	- $46,371
1	$500	$0	$500	$458	$563
2	$2,000	$0	$2,000	$1,679	$2,185
3	$5,000	$0	$5,000	$3,846	$5,305
4	$6,500	$0	$6,500	$4,581	$6,695
5	$47,500	$0	$47,500	$30,674	$47,500
Total	$61,500	$40,000	$21,500	$1,239	$15,877

What is the sum of the Future Values of POSITIVE returns to the investment (this is the numerator inside the root function in the MIRR formula)?

8. What is the sum of the Present Values of all NEGATIVE returns (this is the denominator in the MIRR formula)? Enter your answer as a positive number.

9. What is the Future Value of the $5000 return earned in Year 3 if it can be reinvested at 3%?

10. What is the MIRR of this investment? Enter your answer as a percent to one decimal place (e.g,, 10.5%)