Assignment:
A firm invested $15000 in a project that seemed to have excellent potential. Unfortunately, a lengthy labor dispute in year 3 resulted in costs that exceeded benefits by $8000. T cash flow for the project is as follows:
| Year 0 |
($-15,000) |
| Year 1 |
10000 |
| Year 2 |
6000 |
| Year 3 |
-8000 |
| Year 4 |
4000 |
| Year 5 |
4000 |
- What is the number of sign changes in the cash flows?
- What is the minimum number of roots in the cash flows?
- Assuming an ERR of 12%, what is the IRR for the project?
Provide complete and step by step solution for the question and show calculations and use formulas.