NPV$/$IRR$.$ Here are the cash flows for a project under consideration: $($LO$8-1$ and

LO$8-2)$

$$

$$$$6,750+$$$4,500+$$$18,000$

a$.$ Calculate the project$$s net present value for discount rates of $0,50\%,$ and $100\%.$

b$.$ What is the IRR of the project?

$16.$ IRR$/$NPV$.$ Consider the following project with an internal rate of return of $13\mathrm{.}1\%.$

$($LO$8-2)$

Year Cash Flow

$0+$$$100$

$160$

$260$

a$.$ Should you accept or reject the project if the discount rate is $12\%?$

b$.$ What is project NPV$?$

$19.$ NPV$/$IRR$.$ Consider projects A and B: $($LO$8-2)$

Cash Flows $($dollars$)$

Project $$ NPV at $10\%$

A $30,00021,00021,000+$$$6,446$

B $50,00033,00033,000+$$$7,273$

a$.$ Calculate IRRs for A and B$.$

b$.$ Which project does the IRR rule suggest is better?

c$.$ Which project is really better?