Question: 4. The following cash-flow pattern has two IRRs. Use Excel to draw a graph of the NPV of these cash flows as a function of

4. The following cash-flow pattern has two IRRs. Use Excel to draw a graph of the NPV of these cash flows as a function of the discount rate. Then use the IRR function to identify the two IRRs. Would you invest in this project if the opportunity cost were 20%?

A

B

4

Year

Cash flow

5

0

-500

6

1

600

7

2

300

8

3

300

9

4

200

10

5

-1,000

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