Question: U Question 5 2.5 pts ABCD Corp, has a project whose Internal Rate of Return (IRR) is 8.05%. Which of the following is true? Assume

 U Question 5 2.5 pts ABCD Corp, has a project whose

U Question 5 2.5 pts ABCD Corp, has a project whose Internal Rate of Return (IRR) is 8.05%. Which of the following is true? Assume that the project consists of an initial investment (outflow) and subsequent earnings (inflow). The project will have a negative NPV if the interest/discount rate is higher than 8.05%. The project will have a negative NPV if the interest/discount rate is BOSX We need more information than just internal Rate of Retum (IRRto observe whether the project will be profitable at a given interest/discount rate. None of the above all of the other options are incorrect D Question 6 2.5 pts Assume the firm invests $90,000 today to get $29,000 at Year 1 e. one year from now). $26,000 at Year 2,836,000 at Year 3 $35,000 at Year 4, $27,500 at Year 5, and $16.500 at Year 6. Assuming the required rate of return for the firm's industry is 10.7%, what is this project's profitability index? 1.24 0.36 O 136 0.24

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