A project's initial cash outflow is $$2,000,000.$ The project generates a cash inflow of $$500,000$ for $8$ consecutive years. Using IRR, write down your decision of whether the project should be accepted if the required rate of return is $12\%.$ Using IRR, write down your decision of whether the project should be accepted if the required rate of return is $10\%.$ Ya$,$ you would want to write down your two decisions now. Your careful market analysis indicates that the generated cash inflows will actually stop after $7$ years. I.e$.,$ the original $8$th year cash inflow now is zero. Will your previous two decisions change with this new information, i$.$e$.,$ the project will only generate a cash inflow of $$500,000$ for $7$ consecutive years instead of $8$ years?

Yes; Yes

No; No

Yes; No

No; Yes