7. Milo (Pty) Ltd is considering two mutually exclusive projects with the following projected cash flows: Based on the above cash flows and a cost of capital (discount rate) of 10%, which of the following statements is the most accurate: a) Project lce would be selected if the company uses NPV and IRR for the evaluation of projects. b) Project Fire would be selected if the company uses IRR and payback-period for the evaluation of projects. c) If the company uses IRR only in the evaluation of projects, project lce will be selected. d) Project Fire would be selected if the company uses NPV for the evaluation for projects. e) None of the above 8. Freedom of thought (Pty) Ltd is currently evaluation a project requiring an initial investment of R5 000000 . The oroject is expected to deliver the following cash flows: Assuming the company has a weighted average cost of capital of 10%, should this project be accepted? a) The company should accept the project because the IRR is 10,1% which is higher than the weighted average cost of capital. b) The company should not accept the project because the IRR of 10,1% is not much higher than the weighted average cost of capital. c) The company should accept the project because the IRR is positive. d) The company should not accept the project because the IRR is negative. e) None of the above