3. Excel Problem 3: Consider a project with the below cash flows: 0 1 2 3 -$17,000 16,000 14,000 12,000 4 10,000 5 8,000 6 6,000 7 -52,000 a. What is the IRR of this stream of cash flows? Assuming the cost of capital is 10%, what does the IRR rule say you should do? Assuming the cost of capital is 10% as above, what is the NPV of this project? What does the NPV rule say you should do? (hint: there is an NPV function in excel, but it doesn't work exactly like you might expect it to work....look it up!) Calculate the NPV for different possible discount rates from r = 0% tor = 90%. Graph the resulting NPV profile. Why do you think the NPV gets larger initially for values of r larger than 10%. Doesn't this go against "as discount rates increase, present values decrease"? Why does NPV eventually start to go down as r increases? (2-4 sentence explanation)