Question: Can you answer without using and excel spread sheet 10. Problems with IRR Suppose you are offered a project with the following cash flows: 0
10. Problems with IRR Suppose you are offered a project with the following cash flows: 0 $9800 1 -4300 2 -3300 3 -2500 4 -2300 a. What is the IRR of this project? b. If the appropriate discount rate is 10 percent, should you accept this project? c. If the appropriate discount rate is 20 percent, should you accept this project? d. What is the NPV of the project if the appropriate discount rate is 10 percent? 20 percent? e. Are the decisions under the NPV rule in part d) consistent with those of the IRR rule
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