White Rock Services Inc. has an opportunity to make an investment with the following projected cash flows.

Year	Cash Flow
0	$1,680,000
1	3,885,000
2	2,225,027

a. Calculate the NPV at the following discount rates and plot an NPV profile for this investment: 0%, 5%, 7.5%,10%,15%,20%,22.5%,25%,30%.

b. What does the NPV profile tell you about this investment's IRR?

c. If the company follows the IRR decision rule and their cost of capital is 15%, should they accept or reject the opportunity? Why is it hard to make a decision on this investment based solely on the IRR rule?

d. If the company's cost of capital is 15%, should they reject or accept the investment based on its NPV?