2.

a. Compute the IRR statistic for Project E. The appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Project E
Time:	0	1	2	3	4	5
Cash flow	$2,700	$830	$840	$760	$540	$340

b. Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Project Z
Time:	0	1	2	3	4	5
Cash flow:	$1,800	$510	$640	$810	$460	$260

c. Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively.

Time:	0	1	2	3	4	5	6
Cash flow:	$15,300	$3,100	$4,300	$3,500	$3,500	$3,300	$3,100