1 Gevrek Communications is evaluating a new project. The initial investment required is $41,995.56 and the cost of capital is 5%. Expected cash flows over the next four years are given below: Years Cash Flow (5) 11,000 |-12,000 31,200 41,000 Which of the following is correct? 2 13 Based on the MIRR method, the project is rejected since the MIRR is less than the cost of capital Based on the IRR method, the project is accepted since its IRR is higher than the cost of capital The project should be rejected since the DPB is infinite. The project should be rejected since the PB is infinite, IRR method can't be used to evaluate this project