Question: You have 3 projects with the following cash flows: LOADING... . a . For which of these projects is the IRR rule reliable? b .

You have 3 projects with the following cash flows: LOADING... . a. For which of these projects is the IRR rule reliable? b. Estimate the IRR for each project(to the nearest 1%1%). c. What is the NPV of each project if the cost of capital is 5%5%?20%20%?50%50%? Question content area bottom Part 1 a. For which of these projects is the IRR rule reliable? The IRR rule is reliable for project 3 project 1 project 2. Unless all of the positive negative cash flows of the project precede the positive negative ones, the IRR rule may give the wrong answer and should not be used. Furthermore, there may be multiple IRRs or the IRR may not exist. (Select from the drop-down menus.) Part 2 b. Estimate the IRR for each project(to the nearest 1%1%). The IRR for project 1 is enter your response here%.(Round to the nearest integer.) Part 3 The IRR for project 2 is enter your response here%.(Round to the nearest integer.) Part 4 The IRR for project 3 is enter your response here%.(Round to the nearest integer.) Part 5 c. What is the NPV of each project if the cost of capital is 5%5%?20%20%?50%50%? The NPV for project 1 for a cost of capital of 5%5% is $enter your response here. (Round to the nearest cent.) Part 6 The NPV for project 1 for a cost of capital of 20%20% is $enter your response here. (Round to the nearest cent.) Part 7 The NPV for project 1 for a cost of capital of 50%50% is $enter your response here. (Round to the nearest cent.) Part 8 The NPV for project 2 for a cost of capital of 5%5% is $enter your response here. (Round to the nearest cent.) Part 9 The NPV for project 2 for a cost of capital of 20%20% is enter your response here. (Round to the nearest cent.) Part 10 The NPV for project 2 for a cost of capital of 50%50% is $enter your response here. (Round to the nearest cent.) Part 11 The NPV for project 3 for a cost of capital of 5%5% is $enter your response here. (Round to the nearest cent.) Part 12 The NPV for project 3 for a cost of capital of 20%20% is $enter your response here. (Round to the nearest cent.) Part 13 The NPV for project 3 for a cost of capital of 50%50% is $enter your response here. (Round to the nearest cent.) The IRR rule is reliable for. Unless all of theUnless all of thecash flows of the project precede thecash flows of the project precede the(Select from the drop-down menus.)The IRR for project 1 is(Round to the nearest integer.)The IRR for project 2 is(Round to the nearest integer.)The IRR for project 3 is(Round to the nearest integer.)The NPV for project 1 for a cost of capital of 5% is $(Round to the nearest cent.)The NPV for project 1 for a cost of capital of 20% is $(Round to the nearest cent.)The NPV for project 1 for a cost of capital of 50% is $(Round to the nearest cent.)The NPV for project 2 for a cost of capital of 5% is $(Round to the nearest cent.)The NPV for project 2 for a cost of capital of 20% is(Round to the nearest cent.)The NPV for project 2 for a cost of capital of 50% is $(Round to the nearest cent.)The NPV for project 3 for a cost of capital of 5% is $(Round to the nearest cent.)The NPV for project 3 for a cost of capital of 20% is $(Round to the nearest cent.)The NPV for project 3 for a cost of capital of 50% is $(Round to the nearest cent.)

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