Question: Your firm has been hired to develop new software for the universty's class registration system. Under the contract, you will receive 5491,000 as an upfront

Your firm has been hired to develop new software for the

Your firm has been hired to develop new software for the universty's class registration system. Under the contract, you will receive 5491,000 as an upfront payment. You expect the development costs to be 5445,000 per year for the next 3 years. Once the new system is in place, you will receive a final payment of 5884.000 from the university 4 years from now. 8. What are the IRRs of this opportunity? Hirt Buidart Excel model which fasts the NPV & 1$ intervals from 1% 1 40%. Then zero in on the rate at which the NPV changes signs) b. Iyour cost of capital is 10% is the opportunity atractive? Suppose you are able to renegotiate the terms of the contract so that your final payment in year 4 will be $12 milion. c. What is the IRR of the opportunity now? d. is attractive at the new forms? 8. What are the IRR of this opportunity? (hint Build an Excel model which tests the NPV 41% intervals from 15 to 40% Then zero in on the rates at which the NPV changes signs) The RRs of the project in ascending order are 6% and 3%. (Round to two decimal places) Your firm has been hired to develop new software for the universty's class registration system. Under the contract, you will receive 5491,000 as an upfront payment. You expect the development costs to be 5445,000 per year for the next 3 years. Once the new system is in place, you will receive a final payment of 5884.000 from the university 4 years from now. 8. What are the IRRs of this opportunity? Hirt Buidart Excel model which fasts the NPV & 1$ intervals from 1% 1 40%. Then zero in on the rate at which the NPV changes signs) b. Iyour cost of capital is 10% is the opportunity atractive? Suppose you are able to renegotiate the terms of the contract so that your final payment in year 4 will be $12 milion. c. What is the IRR of the opportunity now? d. is attractive at the new forms? 8. What are the IRR of this opportunity? (hint Build an Excel model which tests the NPV 41% intervals from 15 to 40% Then zero in on the rates at which the NPV changes signs) The RRs of the project in ascending order are 6% and 3%. (Round to two decimal places)

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