part a,b,c and d

UUUIL. UULI 8 of 11 (9 complete) HW Score: 81.99%, 18.86 of 2... P7-19 (similar to) Question Help Your firm has been hired to develop new software for the university's class registration system. Under the contract, you will receive $500,000 as an upfront payment. You expect the development costs to be $453,000 per year for the next 3 years. Once the new system is in place, you will receive a final payment of $899,000 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%, 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 $1.3 million. c. What is the IRR of the opportunity now? d. Is it attractive at the new terms? 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.) The IRRs of the project in ascending order are % and 1%. (Round to two decimal places.) ortunity The Mone Enter your answer in the edit fields and then click Check Answer. Check Answer Clear All 3 parts remaining