2. Internal rate of return (IRR) Ziff Corp. is evaluating a proposed capital budgeting project that will require an initial investment of $1,350,000. The project is expected to generate the following net cash flows: Ziff Corp. has been basing capital budgeting decisions on a project's NPV; however, its new CFO wants to start using the internal rate of return (IRR) method for capital budgeting decisions. The CFO says that the IRR is a better method, because percentages and returns are easier to understand and to compare to required returns. Ziff Corp.'s desired rate of return is 5%. Which of the following is the IRR of the project? 3.80%5.00%5.50%6.50% If this is an independent project, the IRR method states that the firm should If the project's desired rate of return increased, how would that affect the IRR? the project