Problems with the IRR method Acme Oscillators is considering an investment project that has the following rather unusual cash flow$$ pattern: Year Cash Flow

$0100,000,000$

$1-460,300,000$

$2790,800,000$

$3-601,600,000$

$4171,100,000$

a$.$ Calculate the$$ project's NPV at each of the following discount$$ rates: $0\%,5\%,10\%,20\%,30\%,40\%,50\%.$

b$.$ What do the calculations tell you about this$$ project's IRR? The IRR rule tells managers to invest if a$$ project's IRR is greater than the cost of capital. If Acme$$ Oscillators' cost of capital is $8\%,$ should the company accept or reject this$$ investment?

c$.$ Notice that this$$ project's greatest NPVs come at very high discount rates. Can you provide an intuitive explanation for that$$ pattern?

d$.$ If Acme$$ Oscillators' cost of capital is $8\%,$ should the company accept or reject this investment based on$$ MIRR?