Cash Flows question. I used the excel worksheet and the calculator and got 2 different result for th

What is the right answer for this problem:

Suppose you are offered $5,000 today but must make the following payments:

Year $ Cash flows

0 5000

1 -2,500

2 -2000

3 -1000

4 -1000

a. What is the IRR of this offer?

b. If the appropriate discount rate is 10%, should you accept this offer?

c. If the appropriate discount rate is 20%, should you accept this offer?

d. What is the NPV of the offer if the appropriate discount rate is 10%? 20%?

e. Are the decisions under the NPV rule in part (d) consistent with those of the IRR rule?

Cash Flows question. I used the excel worksheet and the calculator and got 2 different result for the NPV.?refinance

a) 14% =irr(5000,-2500,-2000,-1000,-1000) in Excel

b) r=10%. No, the project is worth -359= npv(10%;-2500,-2000,-1000,-1000)+5000

c) r=20%. No, the project is worth -466

d) See above

e) No. While the IRR represents a hurdle rate, negative projects must be declined in accordance with the NPV rule. Typically, a projects would be accepted when IRR%26gt;Cost of capital, or in this case, the discount rate being used.