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Suppose you are offered a project with the following payments: Year Cash Flows 0 $ 9,700 1 5,100 2 3,800 3 2,900 4 1,900 (A)

Suppose you are offered a project with the following payments:

Year Cash Flows
0 $ 9,700
1 5,100
2 3,800
3 2,900
4 1,900

(A) What is the IRR? (b) If the appropriate discount is 13%, should you accept/reject? (c) If the appropriate discount rate is 24%, should you accept/reject? (d) What is the NPV of the offer if the appropriate discount rate is 13 percent? (e) What is the NPV of the offer if the appropriate discount rate is 24 percent?

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