A certain project has the following stream of cash flows:

YearCash Flow

0.............. $ 17,500

1.............. −80,500

2.............. 138,425

3..............−105,455

4.............. 30,030

a. Fill in the following table:

Cost of Capital (%) ....... Project NPV

0.............______

5.............______

10.............______

15.............______

20.............______

25.............______

30.............______

35.............______

50.............______

b. Use the values developed in part a to draw a NPV profile for the project.

c. What is this project’s IRR?

d. Describe the conditions under which the firm should accept this project.