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Problem 1:The cashflows below have two IRRs.Calculate the NPV of the cashflows using a discount rate of 6%.Use Excel to calculate the two IRRs. Create

Problem 1:The cashflows below have two IRRs.Calculate the NPV of the cashflows using a discount rate of 6%.Use Excel to calculate the two IRRs. Create a data table of the net present value of the cashflows as a function of discount rates.Vary the discount rate between 0% and 50% in increments of 5%.Graph the net present value of the cashflows vs. the discount rate.

Year Cash Flow Points 0 -135 Rate NPV 1 95 #N/A Put Chart Below Here 2 95 3 95 4 95 5 -250 Rate 6% NPV #N/A IRR1 #N/A IRR 2 #N/A

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