Solve the following:
a) Suppose a project costs $3,500 and produces cash flows of $500over each of the
following 9 years. What is the IRR of the project?

b) What is the NPV of the following set of cash flows if therequired return is 16%?

Year 0 1 2 3 4
Cash Flow –$10,000 –$1,000 $10,000 $10,000 –$5,000

c) What is the payback period of a $19,000 investment with thefollowing cash flows?

Year 1 2 3 4 5
Cash Flow $3,000 $4,000 $5,000 $6,000 $7,000