Question 1 (based on Chapter 5) Consider a project with the cash flows described below. Assume 11% cost of capital Cash Flow 0 - 150,000 20,000 30,000 40,000 40.000 30.000 20,000 a) What is the present worth (NPV) of the project? Using the present worth (NPV) rule, should the project be accepted? Why? b) What is the internal rate of return (IRR) of the project? Using the IRR rule, should the project be accepted? Why? Question 2 (based on Chapter 5) Use the EXTERNAL RATE OF RETURN method to answer this question. Assume 15% cost of capital. Consider a project with the cash flows described below, and assume the REINVESTMENT rate is equal to 10% (project's cash flows can be re- invested at 10%). Should the project be accepted? Why? Year Cash Flow O -300,000 140,000 100,000 70.000 50.000 4 5 40,000 40,000 6