Question: Please help me solve this Question 4, HW Score: 4.67%, o) o] T R 3.5 of 75 points Part 1 of 2 O Points: 0of

Please help me solve this

Please help me solve this Question 4, HW Score:Please help me solve this Question 4, HW Score:Please help me solve this Question 4, HW Score:
Question 4, HW Score: 4.67%, o) o] T R 3.5 of 75 points Part 1 of 2 O Points: 0of 1 You are considering an investment in a clothes distributer. The company needs $105,000 today and expects to repay you $130,000 in a year from now. What is the IRR of this investment opportunity? Given the riskiness of the investment opportunity, your cost of capital is 18%. What does the IRR rule say about whether you should invest? What is the IRR of this investment opportunity? The IRR of this investment cpportunity is E%. (Round to one decimal place.) Question 5, G R G T o)} Problem 8-11 KRR g R ool Part 1 of 4 QO Points: 0 of 2 Bill Clinton reportedly was paid $12 million to write his book My Life. The book ook three years to write_ In the time he spent writing, Clinton could have been paid to make speeches. Given his popularity, assume that he could earn 59.00 million per year (paid at the end of the year) speaking instead of writing. Assume his cost of capital is 10.0% per year. a. Based on the above cash flows, how many IRRs does the opportunity have? Does the /RR rule give the right answer in this case? b. Assume now that once the book is finished, it is expected to generate royalties of $4 80 million in the first year (paid at the end of the year) and these royalties are expected to decrease at 30% per year in perpetuity. How many IRRs are there in this case? Does the IRR rule work in this case? _ a. Based on the above cash flows, how many IRRs does the opportunity have? (Select the best choice below.) () A. OnelRR () B. TwolRRs () C. Three IRRs () D. Four /RRs Question 6, HW Score: 4.67%, ) Problem 8-12 3.5 of 75 points Part 1 of 5 QO Points: 0of 2 Professor Wendy Smith has been offered the following deal: A law firm would like to retain her for an upfront payment of $54,000. In return, for the next year, the firm would have access to & hours of her time every manth. Smith's rate is 5587 per hour, and her opportunity cost of capital is 13% (equivalent annual rate, EAR). What is the IRR (annual)? What does the IRR rule advise regarding this opportunity? What is the NPV? What does the NPV rule say about this opportunity? - o The IRR (annual) is D%. {Round to two decimal places.)

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