The following cash-fl ow pattern has two IRRs. Use Excel to draw a graph of the NPV of these cash fl ows as a function of the discount rate. Then use the IRR function to identify the two IRRs. Would you invest in this project if the opportunity cost were 20 percent?

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A B 4 Year Cash flow 56780 5 0 -500 1 600 7 9 10 2345 2 300 300 200 5 -1,000