Should the project being considered in the previous problem be accepted or rejected based on IRR? (Hint: start by guessing 11% for IRR.) Does the IRR method seem to give a more definite result? If so, would your recommendations after considering all four methods be strong or cautious?

Previous Problem Calculate the NPV for the following projects. A. An outflow of $7,000 followed by inflows of $3,000, $2,500, and $3,500 at one-year intervals at a cost of capital of 7%. B. An initial outlay of $35,400 followed by inflows of $6,500 for three years and then a single inflow in the fourth year of $18,000 at a cost of capital of 9%. (Recognize the first three inflows as an annuity in your calculations.) C. An initial outlay of $27,500 followed by an inflow of $3,000 followed by five years of inflows of $5,500 at a cost of capital of 10%. [Recognize the last five inflows as an annuity, but notice that it requires a treatment different from the annuity in part (b).]