IntegrativeMultiple 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: EEB a. Why is it difficult to calculate the payback period for this project? b. Calculate the investment's net present 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 huge amount of cash outflow in year 3 makes the calculation difficult. O B. It is unreal for a project to have a cash inflow as an initial investment. C. The oscillating cash flows make it difficult to compute the payback penod. O D. The short life of the project makes it difficult to compute the payback period. Click to select your answer and then click Check Answer Clear All remaining i Data Table (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) Cash flow $160,000 $736,000 $1,265,600 -$964,160 $274,560 Year 1 2 3 4 Print Done r and then click Check