1.Your team is evaluating a new capital investment. Here are the flows with their respective time periods, in millions of US dollars, for the five-year duration of the project:

Period

Cash inflow

0

(25)

1

10

2

5

3

2

4

4

5

19

If the hurdle rate for your project is 17%, and you are solely basing your decision on the IRR, your best course of action is to:

a.Invest

b.Not invest

c.Uncertain; more information is needed