1. (10 points) The following cash flow is given F0 F1 F2 F3 ­100,000 344,000 ­394,030 150,282 List all possible rates of return for this cash flow.

2. (20 Points) For the cash flow from problem #1, the MARR is 20% and the external rate is 15%. What is the modified rate of return for the project? Is this project worth doing using ROR as a measure of goodness?

3. (20 points) The following cash flows are expected for two independent projects: F0 F1 F2 F3 A ­4200 2800 1000 3200 B ­5000 1200 3200 4000 Assume that the lowest MARR is 0% and PW is the measure of goodness. 1. a) For what range of MARR is project A preferable to B 1. b) For what range of MARR is project B preferable to A.