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Suppose you are offered a project with the following payments: Year Cash Flows 0 $ 7,300 1 4,000 2 2,700 3 1,800 4 1,200 a.

Suppose you are offered a project with the following payments:

Year Cash Flows
0 $ 7,300
1 4,000
2 2,700
3 1,800
4 1,200

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 10 percent, should you accept this offer?

  • Accept

  • Reject

c. If the appropriate discount rate is 22 percent, should you accept this offer?

  • Accept

  • Reject

d-1. What is the NPV of the offer 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.) 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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