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Suppose you are offered $7,300 today but must make the following payments: Year Cash Flows ($) 0 $ 7,300 1 4,000 2 2,700 3 1,800
Suppose you are offered $7,300 today but must make the following payments: |
Year | Cash Flows ($) | ||
0 | $ 7,300 | ||
1 | 4,000 | ||
2 | 2,700 | ||
3 | 1,800 | ||
4 | 1,200 | ||
a. | What is the IRR of this offer? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
IRR | % |
d-1. | What is the NPV of the offer if the appropriate discount rate is 10 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16)) |
NPV | $ |
d-2. | What is the NPV of the offer if the appropriate discount rate is 22 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16)) |
NPV | $ |
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