( Round to the nearest cent)

Problems with the IRR method Acme Oscillators is considering an investment project that has the following rather unusual cash flow pattern. Year ON+ Cash Flow $101 - 461 789 -602.2 171.1 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