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Suppose you are offered a project with the following payments: Suppose you are offered a project with the following payments: Year Cash Flows 0 $10,600
Suppose you are offered a project with the following payments:
Suppose you are offered a project with the following payments: Year Cash Flows 0 $10,600 1 -4,900 2 -4,400 3 -3,400 4 -2,700 a. What is the IRR of this offer? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the appropriate discount rate is 14 percent, should you accept this offer? c. If the appropriate discount rate is 24 percent, should you accept this offer? d-1. What is the NPV of the offer if the appropriate discount rate is 14 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 24 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.) a. IRR % b. c. Accept/Reject Accept/Reject NPV d-1. d-2. NPVStep by Step Solution
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