Go back to project E and consider it in isolation. Also, instead of a constant discount rate of 10%, assume that the company will gradually increase its leverage and therefore its discount rate. In fact, the company expects that over the next five years its discount rate will be DR1 = 20%, DR2 = 25%, DR3 = 30%, DR4 = 35%, and DR5 = 40%.

Should the company go ahead with this project? Why? Do the NPV and IRR approaches lead the company to the same decision? Why?