A firm plans to undertake a project with normal cash flows (that is, the initial cash flow is negative and all project's future cash flows are positive ) Suppose that you estimate the weigh for this firm to be 10% and the Internal Rat of Return (IRR) for the proj to be 11%. However, unknown to you, the true requierd rate of return (RRR) on the project is 12%. Ir you aceps this project based on the IRR rule then:

a. You will reduce the value of the firm because the IRR < RRR.

b. You will add value to the firm because NPV > 0

C. You will add value to the firm because the RRR > WACC.

d. You will add value to the firm because the IRR > WACC.