A public-private initiative in Texas will significantly expand the wind-generated energy through- out the state. The cash flow for one phase of the project involving Central Point Energy, a trans-mission utility company, is shown. Given reinvestment rate of 14% per year for excess funds and 10 % per year for borrowing rate for extra funds, determine: given MARR = 12%YearNet cash flow0-500001+220002+380003-20004-10005+5000 a) How many number of ROR values is expected and why?b) Calculate the external rate of return (MIRR).c) Is the project economically viable? A public-private initiative in Texas will significantly expand thewind-generated energy through- out the state. The cash flow forone phase of the project involving Central Point Energy, a trans-mission utility company, is shown. Given reinvestment rate of14% per year for excess funds and 10 % per year for borrowingrate for extra funds, determine: given MARR = 12%Year Net cash flow-500001+220002+380003-20004-10005+5000a) How many number of ROR values is expected and why?b) Calculate the external rate of return (MIRR).c) Is the project economically viable?

The internal rate of return (IRR) is a measure of the percentage return on investment. To determine the investment's economic attractiveness, the IRR is compared to the investor's minimum acceptable rate of return (MARR).... If the IRR and the MARR are equal, the investment's benefits or savings are exactly the same as its expenses. The IRR is the annualised rate of return for a particular investment and predicted future cash flow, regardless of how far into the future it is made. The net gain or loss of an investment over a specific time period, stated as a percentage of the investment's starting cost, is known as the rate of return (RoR). When you calculate the rate of return, you're looking at the percentage change from the start to the end of the period.a: There are 5 ROR values are expected.By taking- 1. Reinvestment rate 2. Borrowing rate 3. MARR 4. Internal rate of return 5. External rate of return Answer b: Description Year 1 Year 2 Year 3 Year 4 Year 5 Initial Outlay Cash Inflows 22,000.00 38,000.00 (2,000.00) (1,000.00) 5,000.00 Future value factor @ 10% 1.46 1.33 1.21 1.10 1.00 Future value in $ @ 10%(Cash flows * factor) 32,210.20 50,578.00 (2,420.00) (1,100.00) 5,000.00 Total Future Values 84,268.20 Total Future Values 84,268.20 Total initial investment 50,000.00 Total initial investment*(1+ERR)5= Total Future Values 50,000*(1+ERR)5= 84,268.20 ERR 11% c: Project is not economic viable as MAAR(12%) is higher than ERR (11%)..