Suppose you are offered 8200 today but must make the


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$

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Finance Basics: Suppose you are offered 8200 today but must make the
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