- 14.Ace Co is considering a new project. Ace currently installs burglar alarms, putting contact points on access portals and movement sensors in general areas of a property. The new project is in the fire alarm business, a business considered to be similar in many ways to what Ace currently does. A junior member of the finance team has estimated the cash flows for the project as follows: No tax-allowable depreciation is available for loose tools Ace is entirely equity financed with a cost of equity correctly calculated as 12%. What is the NPV of the above project to the nearest $100 ? 28700 53000 58400 34100 - 15. The IRR of a project has been calculated as 26%. Which of the following statement are true? (i) The IRR is not a measure of absolute profitability and linear interpolation provides only an estimates of the IRR. (i)lf the IRR of the project is higher than its cost of capital then project is always acceptable regardiess of the pattern of the cash flows. Both statements are true Both statements are false