Question
Suppose you are offered $8,200 today but must make the following payments: Year Cash Flows ($) 0 $ 8,200 1 4,500 2 3,200 3 2,300
Suppose you are offered $8,200 today but must make the following payments:
Year Cash Flows ($)
0 $ 8,200
1 4,500
2 3,200
3 2,300
4 1,100
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 11 percent, should you accept this offer?Reject/Accept
c.If the appropriate discount rate is 22 percent, should you accept this offer?Reject/Accept
d-1.What is the NPV of the offer if the appropriate discount rate is 11 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 22 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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