A project generates the cash flow stream shown below. The hurdle rate for the company is 20%. 1 = $1,000

Problem 1.Determine if the project is economically attractive using an ROR analysis.

Problem 2. Determine if the project is economically attractive using an NPV analysis.

Problem 3. Graphically determine the ROR for the project in the same manner as Figure 3-12 in our text. Make sure your plot includes at least five points and brackets the ROR.

Problem 4. Construct the cumulative cash position diagram for the project with i = ROR.

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