Question: Question 18 (6 points) 1. Blue Demon Cycle Shop is considering the purchase of used mopeds to be rented to city tourists. The mopeds cost

Question 18 (6 points) 1. Blue Demon Cycle Shop is considering

Question 18 (6 points) 1. Blue Demon Cycle Shop is considering the purchase of used mopeds to be rented to city tourists. The mopeds cost $14,740 and are expected to produce cash flows of $4,000 per year for 6 years from rental fees. Blue Demon's cost of capital is 14%. Calculate the projects approximate IRR. (Even though you will use a calculator to solve for IRR, including formulas and describing your thoughts will help with partial credit should that be needed.) (Also, draw a time line!) A Question 19 (7 points) Big Brother Holding Co. has a project under consideration with the following estimated cash flows. The firm's cost of capital is 12%. Calculate the NPV for the project. Year 0 ($50,000) 1 $10,000 2 $20,000 3 $30,000 4 $40,000

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