Year 0 1 2 3 4 Project 1 -$151 $20 $39 $58 $82 Project 2...

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Year 0 1 2 3 4 Project 1 -$151 $20 $39 $58 $82 Project 2 -826 0 0 7,006 -6,502 Project 3 20 39 61 80 -244

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

The IRR for project 1 is

The IRR for project 2 is

The IRR for project 3 is

b. What is the NPV of each project if the cost of capital is 5%?

The NPV for project 1 for a cost of capital of 5% is

The NPV for project 2 for a cost of capital of 5% is

The NPV for project 3 for a cost of capital of 5% is

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