Suppose you are offered $8,000 today but must make the following payments: Year Cash Flows ($)...

Suppose you are offered $8,000 today but must make the following payments: Year Cash Flows ($) 0 $ 8,000 1 ?4,300 2 ?3,000 3 ?2,100 4 ?1,300 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 14.81 % b. If the appropriate discount rate is 13 percent, should you accept this offer? Reject Accept c. If the appropriate discount rate is 20 percent, should you accept this offer? Reject Accept d-1. What is the NPV of the offer if the appropriate discount rate is 13 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 20 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 $

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jeff jeffy answered 1 year ago

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