Suppose you are offered a project with the following payments:

Year Cash Flows
0 \$ 8,700
1 −4,700
2 −3,400
3 −2,500
4 −1,000
________________________________________

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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 24 percent, should you accept this offer?

Accept

Reject

d-1. What is the NPV of the offer if the appropriate discount rate is 11 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 24 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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