Your firm has been hired to develop new software for the university's class registration system. Under the contract, you will receive $500,000 as an upfront payment. You expect the development costs to be $450,000 per year for the next three years. Once the new system is in place, you will receive a final payment of $900,000 from the university four years from now.

a) generate the internal rate(s) of return of this opportunity.

b) if your cost of capital is 10%, is the opportunity attractive?

Suppose you are able to renegotiate the terms of the contract so that your final payment in year 4 will be 1 million.

c) what is the internal rate of return of the opportunity now?

d) if your cost of capital is 10%, is it attractive at these terms?