Question: Year 0 1 2 3 4 Project 1 -$148 $18 $40 $59 $80 Project 2 -824 0 0 7009 -6504 Project 3 18 39 60

Year 0 1 2 3 4
Project 1 -$148 $18 $40 $59 $80
Project 2 -824 0 0 7009 -6504
Project 3 18 39 60 82 -243

a. For which of these projects is the IRR rule reliable?

b. Estimate the IRR for each project (to the nearest 1%).

c. What is the NPV of each project if the cost of capital is

5%?

20%?

50%?

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