Your "friend" asks to borrow $$2,500$ for car repairs and promises to pay you back $$225$ a month for

$12$ months, with the first payment coming one month after the loan.

a$.$ Using an annual interest rate of $10\%,$ calculate the NPV to you of making this loan $($assuming

that there is no risk of your friend not paying you back$)$

b$.$ Perform the same calculation using an interest rate of $15\%$

c$.$ Find the interest rate that results in a NPV of zero $($the IRR$)$

Use Exel