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Question 2. Consider a project with the following cash flows: Co = -100, C1 = 200, C2 =-75. (a) Compute the IRR(s) for this project.
Question 2. Consider a project with the following cash flows: Co = -100, C1 = 200, C2 =-75. (a) Compute the IRR(s) for this project. Hint: use the formula for IRR in the lecture notes and multiply everything by (1+IRR)?. This gives you a quadratic equation. Now use the quadratic formula to solve this equation for IRR. (b) Would you accept this project if the opportunity cost of capital is 20%
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