3. Y-Bar uses IRR to evaluate projects. The company has a cost of capital of 15% They are currently comparing two mutually exclusive projects with the following projected cash flows: Project X Project Y Initial Investment -R500 000,00 -R360 000,00 Annual Cash flows Year 1 R25 000,00 R100 000,00 Year 2 R60 000,00 R60 000,00 Year 3 R250 000,00 R250 000,00 Year 4 R400 000,00 R90 000,00 Based on the information above, which statement is most accurate: (a) (b) (c) (d) (e) The company will select project Y as it has the highest NPV. The company will select project Y as it has the highest IRR. The company will not select either project X or Y on the bases of IRR. The company will select both project X and Y as the IRR of the projects are very similar. None of the above (2) )