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for the next 3 years. Once the new system is in place, you will receive a final payment of $916,000 from the university 4 years
for the next 3 years. Once the new system is in place, you will receive a final payment of $916,000 from the university 4 years from now. a. What are the IRRs of this opportunity? (Hint: Build an Excel model which tests the NPV at 1% intervals from 1% to 40%. Then zero in on the rates at which the NPV changes signs.) b. If your cost of capital is 10%, what is the NPV of the opportunity? Is it attractive? Suppose you are able to renegotiate the terms of the contract so that your final payment in year 4 will be $1.3 million. c. What is the IRR of the opportunity now? d. What is the NPV of the opportunity now? Is it attractive at the new terms
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