drop down options: reject or accept

Transcenter Consortium Corp. is evaluating a proposed capital budgeting project that will require an initial investment of $1,550,000. The project is expected to generate the following net cash flows: Year Net Cash Flow 1 $350,000 $475,000 $400,000 $475,000 4 Transcenter Consortium Corp. has been basing capital budgeting decisions on a project's NPV; however, its new CFO wants to start using the internal rate of return (IRR) method for capital budgeting decisions. The CFO says that the IRR is a better method, because percentages and returns are easier to understand and to compare to required returns. Transcenter Consortium Corp.'s desired rate of return is 5%. Which of the following is the IRR of the project? 108.68% O 3.80% O 5.00% O 4.66% O 3.66% If this is an independent project, the IRR method states that the firm should the project. If the project's desired rate of return increased, how would that affect the IRR? O The IRR will increase. O The IRR will decrease. The IRR will not change