Answer:
Net present value when discount rate is 0% = $15,750
Net present value when discount rate is 50% = $4,250
Net present value when discount rate is 100% = $0
IRR =100%
Explanation:
The net present value is the present value of after tax cash flows from a project.
The IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.
The net present value can be calculated using a financial calculator
Cash flow in year 0 = $-6,750
Cash flow for year one = $+4,500
Cash flow in year two = +18,000
Net present value when discount rate is 0% = $15,750
Net present value when discount rate is 50% = $4,250
Net present value when discount rate is 100% = $0
IRR =100%
I hope my answer helps you
