6.9 Suppose you are offered $5,000 today and obligated to make scheduled payments as follows:

a. What is the IRRs of this offer?

b. If the appropriate discount rate is 10 percent, should you accept this offer?

c. If the appropriate discount rate is 20 percent, should you accept this offer?

d. What is the corresponding NPV of the project if the appropriate discount rates are 10 percent and 20 percent, respectively? Are the choices under the NPV rule consistent with those of the IRR rule?

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