Problem 3: Calculating IRR. A firm evaluates all its projects by applying the IRR rule. The IRR for the following project is _% Year 0 1 2 3 Cashflow -70,000 41,000 20,000 30,000 3a. Points: 7 3b. Should they accept the project if the required return is 14%? (yes or no) 3b. Points: 3 Problem 4: Calculating NPV. For the cash flows in the previous problem, suppose the firm uses NPV to evaluate projects. 4a. At a required return of 11% the projects NPV is $_ 4a. Points: 5 4b. At a required return of 20% the projects NPV is $ 4b. Points: 5 Problem 5: Calculating NPV and IRR. A project that provides annual cash flows of $ 1,710 for 10 years costs $ 7,560 today. 5a. The NPV is $ _if the required rate of return is 10%. 5a. Points: 3 5b. The NPV is $ Lif the required rate of return is 24%. 5b. Points: 3 5c. At what discount rate would you be indifferent between accepting the project and rejecting it? I would be indifferent at 5c. Points: 4 %