Consider a project with the following cash flows: C0 = -100, C1 = 200, C2 = -75.

a. Compute the IRR(s) for this project, without guessing and verifying. [Hint: use the formula for IRR in the lecture notes and multiply everything by (1+IRR)2. This gives you a quadratic equation that you need to solve.]

b. Would you accept this project if the opportunity cost of capital is 20%?

c. Simply using the results from (a) and (b), what can you infer about the shape of the NPV function, NPV(r)?