Question: Please help me understand this because I understand a few parts. Suppose you are offered $7,500 today but must make the following payments: Year Cash
Please help me understand this because I understand a few parts. Suppose you are offered $7,500 today but must make the following payments:
Year Cash Flows
0 $ 7,500
1 4,200
2 2,900
3 2,000
4 1,300
What is the IRR of this offer?
What is the NPV of the offer if the appropriate discount rate is 12 percent?
What is the NPV of the offer if the appropriate discount rate is 24 percent?
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