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2. (3pts) A bridge troll offered you a deal. If you pay him $8,000 today, he will let you cross the bridge. In 10
2. (3pts) A bridge troll offered you a deal. If you pay him $8,000 today, he will let you cross the bridge. In 10 years, you will come back to the bridge and he will probably give you $35,000. However, he does seem a little untrustworthy so there is a 20% chance he will not give you the reward (meaning there is a 20% chance you will receive $0). If you have a required return is 15%, should you accept his offer? Show your work using the IRR method and state your decision
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