Problems with the IRR methodAcme Oscillators is considering an investment project that has the following rather unusual cash flow pattern.

Year	Cash Flow
0	$101
1	462
2	793
3	602.6
4	171.8

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?