Reference no: EM132245351

Suppose you are offered a project with the following payments:

YearCash Flows  0$ 9,800        1-5,300        2-4,000        3-3,100        4-1,700        

a.What is the IRR of this offer? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

IRR _____%  

b.If the appropriate discount rate is 15 percent, should you accept this offer?   Reject or Accept

c.If the appropriate discount rate is 21 percent, should you accept this offer?   Reject or Accept

d-1.What is the NPV of the offer if the appropriate discount rate is 15 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places (e.g., 32.16).)

NPV$ _____  

d-2.What is the NPV of the offer if the appropriate discount rate is 21 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places (e.g., 32.16).)

NPV$   ______