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Suppose you are offered $9,800 today but must make the following payments: ...

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Accounting

Suppose you are offered $9,800 today but must make the following payments:

Year Cash Flows ($)
0 $ 9,800
1 ?5,300
2 ?4,000
3 ?3,100
4 ?1,700

a. What is the IRR of this offer? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

IRR %

b. If the appropriate discount rate is 15 percent, should you accept this offer?
Accept
Reject

c. If the appropriate discount rate is 21 percent, should you accept this offer?
Accept
Reject

d-1.

What is the NPV of the offer if the appropriate discount rate is 15 percent? (Negative amount 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 21 percent? (Negative amount 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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