costs to be $$431,000$ per year for the next $3$ years. Once the new system is in place, you will receive a final payment of $$833,000$ from the university $4$ years from now.

b$.$ If your cost of capital is $10\%,$ is the opportunity attractive?

Suppose you are able to renegotiate the terms of the contract so that your final payment in year $4$ will be $$1\mathrm{.}2$ million.

c$.$ What is the IRR of the opportunity now?

d$.$ Is it attractive at the new terms?

The IRRs of the project in ascending order are $\%$ and $\%.($Round to two decimal places.$)$

b$.$ If your cost of capital is $10\%,$ is the opportunity attractive?

If your cost of capital is $10\%,$ the opportunity

$($Select from the drop$-$down menu.$)$

Suppose you are able to renegotiate the terms of the contract so that your final payment in year $4$ will be $$1\mathrm{.}2$ million.

c$.$ What is the IRR of the opportunity now? $($Select the best choice below.$)$

A$.$ The IRR rule works as before.

B$.$ The IRR rule always gives the wrong answer.

C$.$ Now there are $3$ IRRs.

D$.$ Now there are no IRRs.

d$.$ Is it attractive at the new terms?

If your cost of capital is $10\%,$ the opportunity