c$.$ What does your answer to part b tell you about this project's IRR? $($Select the best answer below.$)$

A$.$ There are infinite IRRs for this project.

B$.$ There is no IRR for such cash flows.

C$.$ There are multiple IRRs for this project.

D$.$ There is only one IRR for this project.

d$.$ Should Froogle invest in this project if its cost of capital is $5\%($@elect the best answer below.$)$

A$.$ Yes

B$.$ No

Should Froogle invest in this project if its cost of capital is $15\%($$elect the best answer below.$)$

A$.$ No

B$.$ Yes

e$.$ Assume that the financing is $10\%$ and reinvestment rate is $13\%,$ what is the MIRR?

If the WACC is $108($nd the reinvestment rate is $13\%,$ then the MIRR is $11\mathrm{.}47\%($Round to two decimal places.$)$

f$.$ In general, when faced with a project like this, how should a firm decide whether to invest in the project or reject it$?($Select the best answer below.$)$

A$.$ It is best to use the IRR method.

B$.$ It is best to use the NPV method.

C$.$ It is best to use the payback period method.

D$.$ None of the methods is suitable.

$$

$$

Integrative$-$Multiple IRRs Froogle Enterprises is evaluating an unusual investment project. What makes the project unusual is the stream of cash inflows and outflows shown in the following table:

a$.$ Why is it difficult to calculate the payback period for this project?

b$.$ Calculate the investment's net present value at each of the following discount rates: $0\%,5\%,10\%,15\%,20\%,25\%,30\%,35\%.$

c$.$ What does your answer to part $b$ tell you about this project's IRR $?$

d$.$ Should Froogle invest in this project if its cost of capital is $5\%?$ What if the cost of capital is $15\%?$

e$.$ Assume that the financing is $10\%$ and reinvestment rate is $13\%,$ what is the MIRR?

f$.$ In general, when faced with a project like this, how should a firm decide whether to invest in the project or reject it$?$

a$.$ Why is it difficult to calculate the payback period for this project? $($Select the best answer below.$)$

A$.$ The huge amount of cash outflow in year $3$ makes the calculation difficult.

B$.$ The short life of the project makes it difficult to compute the payback period.

C$.$ It is unreal for a project to have a cash inflow as an initial investment.

D$.$ The oscillating cash flows make it difficult to compute the payback period.

b$.$ If the discount rate is $0\%,$ the investment's NPV is $ $($Round to two decimal places.$)$

If the discount rate is $5\%,$ the investment's NPV is $ $($Round to two decimal places.$)$

If the discount rate is $10\%,$ the investment's NPV is $

$.($Round to two decimal places.$)$

If the discount rate is $15\%,$ the investment's NPV is $

$.($Round to two decimal places.$)$

If the discount rate is $20\%,$ the investment's NPV is $

$($Round to two decimal places.$)$

If the discount rate is $25\%,$ the investment's NPV is $

$.($Round to two decimal places.$)$

If the discount rate is $30\%,$ the investment's NPV is $$.($Round to two decimal places.$)$

If the discount rate is $35\%,$ the investment's NPV is $$.($Round to two decimal places.$)$

Data table

$($Click on the icon located on the top$-$right corner of the data table below in order to copy its contents into a spreadsheet.$)$

$\backslash$table$[[$Year$,$Cash flow$],[0,$$$200,000$