** Just need #2 answered** 1. Consider an investment that costs $100,000 and has a...

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Finance

** Just need #2 answered**

1. Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9%. Calculate NPV of the project. Calculate IRR of the project. Should we accept the project?

2. What method should be the primary decision rule? Why?

3. When is the IRR rule unreliable. i.e., when is using IRR as a decision making for projects problematic?

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