2. (15 points) Suppose that projects cash flows are C0 = $82, C1 = $30, C2 = $100, C3 = $100, C4 = $150. Required rate of return is 10%.

(a) (5 points) Compute NPV. Should you take the project based on the NPV rule?

(b) (7 points) Compute IRR of this project. What would be an appropriate IRR rule for this project (i.e., for which required rates of return the project should be accepted)?

(c) (3 points) Suppose now that signs of cash flows are flipped, i.e., C0 = $82, C1 = $30, C2 = $100, C3 = $100, C4 = $150. What is IRR rule now?