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Suppose you are offered $8,000 today but must make the following payments Year 0 1 2 Cash Flows ($) $8,000 4,300 3,000 2,100 1,300 4
Suppose you are offered $8,000 today but must make the following payments Year 0 1 2 Cash Flows ($) $8,000 4,300 3,000 2,100 1,300 4 a. What is the IRR of this offer? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR b. If the appropriate discount rate is 13 percent, should you accept this offer? O Accept O Reject c. If the appropriate discount rate is 20 percent, should you accept this offer? O Accept O Reject d-1. What is the NPV of the offer if the appropriate discount rate is 13 percent? (A negative answer 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 20 percent? (A negative answer 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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