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Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Problems with the IRR method Acme Oscillators is considering

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Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Problems with the IRR method Acme Oscillators is considering an investment project that has the following rather unusual cash flow pattern: a. Calculate the project's NPV at each of the following discount rates: 0%,5%,10%,20%,30%,40%,50%. b. What do the calculations tell you about this project's IRR? The IRR rule tells managers to invest if a project's IRR is greater than the cost of capital. If Acme Oscillators' cost of capital is 8%, should the company accept or reject this investment? c. Notice that this project's greatest NPVs come at very high discount rates. Can you provide an intuitive explanation for that pattem? d. If Acme Oscillators' cost of capital is 8%, should the company accept or reject this investment based on MIRR? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Problems with the IRR method Acme Oscillators is considering an investment project that has the following rather unusual cash flow pattern: a. Calculate the project's NPV at each of the following discount rates: 0%,5%,10%,20%,30%,40%,50%. b. What do the calculations tell you about this project's IRR? The IRR rule tells managers to invest if a project's IRR is greater than the cost of capital. If Acme Oscillators' cost of capital is 8%, should the company accept or reject this investment? c. Notice that this project's greatest NPVs come at very high discount rates. Can you provide an intuitive explanation for that pattem? d. If Acme Oscillators' cost of capital is 8%, should the company accept or reject this investment based on MIRR

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