Consider a project with the following cash flows: CF0 = -$600, CF1 = $1,110, CF2 = $700, CF3 = -$600, and CF4 = -$1, 200. Use Excel to answer the following questions:

(a)Calculate the internal rate of return of this investment opportunity. Would you pursue this project if the opportunity cost of capital is 10%? 50%? 60%?

(b)Calculate the NPV of this investment opportunity under discount rate of 12%. Would you accept this project based on the NPV rule?