The IRR rule suffers from several drawbacks, one of which has to do with projects of "unconventional cashflows." In this assignment, we will be able to demonstrate why unconventional cashflows disqualifies IRR.

Use the table below (also at the bottom of page 4 in the course workbook) to create a plot of discount rate vs NPV (as we demonstrated in class for IRR Excel work.) Please use the following range of discount rates: 0% to 85% at 5% increments.

Year	Cash Flows
0 1 2 3 4 5	-170 160 160 160 160 -520

Use your Excel work to answer the questions posed in this assignment.

Question 1

Upload your Excel Spreadsheet.

Question 2

What is the NPV using the discount rate of 5%?

Question 3

What is the NPV using the discount rate of 10%?

Question 4

What is the NPV using the discount rate of 65%?

Question 5

What is the NPV using the discount rate of 70%?

Question 6

Why is the IRR inappropriate for this particular project? State in 1-2 sentences.