0000 Metaverse.com hired you as a financial analyst. One of your first assignments is to evaluate two different acquisitions the company is contemplating. The first acquisition, code named Project Alpha, would require Metaverse.com to pay $1.5MM upfront and another payment to the sellers of $750,000 at the end of year 3. You estimate that the free cashflows from Project Alpha would be $500,000 annually for the next 6 years. Because the equipment Project Alpha uses is so advanced, you expect to be able to sell it for $50,000 at the end of year 6. Project Gamma would require Metaverse.com to pay $558,000 upfront. You estimate that the free cashflows from Project Gamma would be $139,000 annually for the next 6 years, with no salvage value for its equipment. What is the IRR of Project Alpha assuming your required rate of return for projects with this risk level is 9.1%? can't be determined because too many negative cashflows 12.85% shouldn't be determined because multiple negative cashflows mean can't use IRR to make a rational decision 13.07% 1 point Metaverse.com hired you as a financial analyst. One of your first assignments is to evaluate two different acquisitions the company is contemplating. The first acquisition, code named Project Alpha, would require Metaverse.com to pay $1.5MM upfront and another payment to the sellers of $750,000 at the end of year 3. You estimate that the free cashflows from Project Alpha would be $500,000 annually for the next 6 years. Because the equipment Project Alpha uses is so advanced, you expect to be able to sell it for $50,000 at the end of year 6. 0000 Project Gamma would require Metaverse.com to pay $558,000 upfront. You estimate that the free cashflows from Project Gamma would be $139,000 annually for the next 6 years, with no salvage value for its equipment. What is the IRR of Project Gamma, assuming your required rate of return for projects with this risk level is 9.1%? can't be determined because too many negative cashflows 12.85% 13.07% shouldn't be determined because multiple negative free cashflows means can't use IRR to make a rational decision