Question
Suppose you are offered a project with the following payments: Year Cash Flows 0 $9600 1 -5000 2 -3700 3 -2800 4 -1700 a. What
Suppose you are offered a project with the following payments:
Year | Cash Flows |
---|---|
0 | $9600 |
1 | -5000 |
2 | -3700 |
3 | -2800 |
4 | -1700 |
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.)
d-1. What is the NPV of the offer if the appropriate discount rate is 12 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 offer if the appropriate discount rate is 23 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.)
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