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(Q2) Suppose you are offered $7,000 today but must make the following payments: (a) What is the IRR of this offer? (10 points) Year

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(Q2) Suppose you are offered $7,000 today but must make the following payments: (a) What is the IRR of this offer? (10 points) Year Cash Flows ($) $7,000 1 -3,700 2 -2,400 3 -1,500 1,200 (b) If the appropriate discount rate is 10 percent, should you accept this offer? (5 points) (c) If the appropriate discount rate is 20 percent, should you accept this offer? (5 points)

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