Suppose you are offered $8,200 today but must make the following payments:
Year Cash Flows ($)
0 $ 8,200
1 -4,500
2 -3,200
3 -2,300
4 -1,100
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 11 percent, should you accept this offer? Reject/Accept
c.If the appropriate discount rate is 22 percent, should you accept this offer? Reject/Accept
d-1.What is the NPV of the offer if the appropriate discount rate is 11 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$