Problems with the IRR method Acme Oscillators is considering an investment project that has the following rather unusual cash flow pattern:

a$.$ Calculate the project's NPV at each of the following discount rates: $0\%,5\%,10\%,20\%,30\%,40\%,50\%.$

b$.$ What do the calculations tell you about this project's IRR? The IRR rule tells managers to invest if a project's IRR is greater than the cost of capital. If Acme Oscillators' cost of capital is $8\%,$ should the

company accept or reject this investment?

c$.$ Notice that this project's greatest NPVs come at very high discount rates. Can you provide an intuitive explanation for that pattern?

d$.$ If Acme Oscillators' cost of capital is $8\%,$ should the company accept or reject this investment based on MIRR?

a$.$ Calculate the NPV at the following discount rates for this investment: $0\%,5\%,10\%,20\%,30\%,40\%,50\%.$

The NPV at $0\%$ is $9,($Round to the nearest dollar.$)$

Data table

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