3 Points Question 5 Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows Af a project's IRR is greater than the cost of capital, then its NPV must be negative To find a project's IRR, we must solve for the discount rate that causes the PV of the inflows to equal the PV of the project's costs A project's regular IRR is found by discounting the cash inflows at the cost of capital to find the present value (PV), then compounding this PV to find the IRR To find a project's IRR, we must a discount rate that is equal to the cost of capital 10 Points Question 6 A firm evaluates all of its projects by applying the IRR rule. The current proposed project has cash flows of -$40,000 $16,850, $15.700 and 519,300 for Years 0 to 3, respectively. The required return is 15 percent. What is the project IRR? Should the project be accepted or rejected? A 13.84 percent accept B 18.42 percent; accept C 13.84 percent reject D) 16.58 percent; accept E 16.58 percent, reject