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Compute the sum of the two IRRs
4. The following cash-flow pattern has two IRRs. Use Excel to draw a graph of the NPV of these cash flows as a function of th
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Answer #1

Year Cash Flow PV Factor Present Value

0 (500) 1 (500)

1 600 .8333 500

2 300 .6944 208

3 300 .579 174

4 200 .482 96

5   (1000) .402   (402)

NPV 76

Since NPV(Net present value is positive the investment in project should be done.

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