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Integrative-Multiple IRRS Froogle Enterprises is evaluating an unusual investment project. What makes the project unusual is the stream of cash inflows and outflows shown in

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Integrative-Multiple IRRS Froogle Enterprises is evaluating an unusual investment project. What makes the project unusual is the stream of cash inflows and outflows shown in the following table ! a. Why is it difficult to calculate the payback period for this project? b. Calculate the investment's not prosent value at each of the following discount rates: 0%, 5%, 10%, 15%, 20%, 25%, 30%, 35%. c. What does your answer to part b tell you about this project's IRR? d. Should Froogle invest in this project if its cost of capital is 5%? What if the cost of capital is 15%? e. In general, when faced with a project like this, how should a firm decide whether to invest in the project or reject it? a. Why is it difficult to calculate the payback period for this project? (Select the best answer below.) O A. The short life of the project makes it difficult to compute the payback period, OB. The oscillating cash flows make it difficult to compute the payback period. OC. It is unreal for a project to have a cash inflow as an initial investment OD. The huge amount of cash outflow in year 3 makes the calculation difficult b. If the discount rate is 0%, the investment's NPV is $. (Round to two decimal places.) if the discount rate is 5%, the investment's NPV is $. (Round to two decimal places.) If the discount rate is 10%, the investment's NPV is $. (Round to two decimal placos.) If the discount rate is 15%, the investment's NPV is scl (Round to two decimal places.) of the discount rate is 20%, the investment's NPV is $(Round to two decimal places) If the discount rate is 25%, the investment's NPV is sl). (Round to two decimal places.) in order to copy the contents of the data table below (Click on the icon here into a spreadsheet.) Year 0 1 2 3 4 Cash flow $180,000 - $828,000 $1,423,800 - $1,084,680 $308,880

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