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Suppose you are offered a project with the following cash flows: Cash Flows $ 9,800 Year 0 1 -4,300 2 -3,300 3 4 -2,500
Suppose you are offered a project with the following cash flows: Cash Flows $ 9,800 Year 0 1 -4,300 2 -3,300 3 4 -2,500 -2,300 a. What is the IRR of this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Answer is complete but not entirely correct. 8.60% b. If the appropriate discount rate is 10 percent, should you accept this project? Accept Reject c. If the appropriate discount rate is 20 percent, should you accept this project? Reject Accept d-1. What is the NPV of the project if the appropriate discount rate is 10 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.) d-2. What is the NPV of the project if the appropriate discount rate is 20 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. d-1. NPV $ -19,885.58 X d-2. NPV $ 18,230.94 x
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