Bive Lama Mining Compacy is evaluating a proposed copital budgeting project (project Deita) that will require an initial imvestment of $1,$00,000. Blue tama Mining Company has been basing copital budgeting decisions on a project's NPV; however, its new CFo wants to start using the TRR method for capital budgeting decisions. The CFO says that the IRR is a better methed because percentages and returns are easier to understand and to compare to required retums. Bhe Ulama Mining Company's WacC is 10%, and project Delta has the same risk as the firm's average project. The project is expected to generate the following not cash flows: Which of the following is the correct calculabion of project Delts's IRR? 1.860 1.95% 2.1496 1.67% If this is an independent project, the IRR method states that the firm should If the profect's cost of capital were to increase, how would that affect the IRR? The IRR would not change. The TRR would increose. The TRR would decrease