Given the following cash flows for four projects, calculate the net present value using a discount rate of 12% a year. What are the internal rates of return for the projects?
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Project A
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Project B
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Project C
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Project D
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|
|
Year
|
Income
|
Expenditure
|
Income
|
Expenditure
|
Income
|
Expenditure
|
Income
|
Expenditure
|
|
0
|
0
|
18,000
|
0
|
5,000
|
0
|
24,000
|
0
|
21,000
|
|
1
|
2,500
|
0
|
0
|
10,000
|
2,000
|
10,000
|
0
|
12,000
|
|
2
|
13,500
|
6,000
|
0
|
20,000
|
10,000
|
6,000
|
20,000
|
5,000
|
|
3
|
18,000
|
0
|
10,000
|
20,000
|
20,000
|
2,000
|
20,000
|
1,000
|
|
4
|
9,000
|
2,000
|
30,000
|
10,000
|
30,000
|
2,000
|
30,000
|
0
|
|
5
|
5,000
|
0
|
50,000
|
5,000
|
25,000
|
2,000
|
25,000
|
0
|
|
6
|
3,000
|
0
|
60,000
|
5,000
|
15,000
|
2,000
|
20,000
|
5,000
|
|
7
|
1,000
|
0
|
60,000
|
5,000
|
10,000
|
1,000
|
20,000
|
1,000
|