Question: There is no graph or anything additional, this is the question, just like I posted it, Thanks in advance for the help :) Your firm

There is no graph or anything additional, this is the question, just like I posted it, Thanks in advance for the help :)

Your firm has been hired to develop new software for theuniversity's class registration system. Under thecontract, you will receive $502,000 as an upfront payment. You expect the development costs to be $442,000 per year for the next 3 years. Once the new system is inplace, you will receive a final payment of $864,000 from the university 4 years from now.

A. What are the IRRs of thisopportunity?(Hint: Build an Excel model which tests the NPV at1% intervals from1% to40%. Then zero in on the rates at which the NPV changessigns.)

The IRRs of the project in ascending order are _______% and _______%. (Round to two decimalplaces.)

B. If your cost of capital is 10%, is the opportunityattractive or not attractive?

Suppose you are able to renegotiate the terms of the contract so that your final payment in year 4 will be $1.2 million.

C. What is the IRR of the opportunitynow? (Select the best choice below)

  1. Now there are 3 IRR's
  2. The IRR Rule always gives the wrong answer
  3. Now there are no IRRs
  4. The IRR rule works as before

D. is it attractive at the newterms?

If your cost of capital is 10%, the opportunity is _______________ Select- attractive or not attractive

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