$(3$ points$)$ If the Net Present Value $($NPV$)$ for an investment is $-$$$5,000$ and the nominal

after$-$tax rate $(r)$ is $15\%,$ is the internal rate of return $($IRR$)$ higher or lower than this rate

$(r)?$ Why?

$(5$ points$)$ Draw a line graph illustrating the relationship among the NPV of the

investment, IRR, and after$-$tax rate in Question $2.$ Label the axes on the diagram, the IRR,

the NPV$,$ and interest rate points, and indicate areas where the project is acceptable and

where it is rejectable.