Blue Llama Mining Company has been basing capital budgeting decisions on a project's NPV; however, its new CFO wants to start using the IRR method for capital budgeting decisions. The CFO says that the IRR is a better method because percentages and returns are easier to understand and to compare to required returns. Blue Llama Mining Company's WACC is 8%, and project Delta has the same risk as the firm's average project. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 Year 2 $275,000 $400,000 $500,000 $400,000 Year 3 Year 4 Which of the following is the correct calculation of project Delta's IRR? O 1.86% 1.77% 2.23% 2.05% Blue Llama Mining Company has been basing capital budgeting decisions on a project's NPV; however, its new CFO wants to start using the IRR method for capital budgeting decisions. The CFO says that the IRR is a better method because percentages and returns are easier to understand and to compare to required returns. Blue Llama Mining Company's WACC is 8%, and project Delta has the same risk as the firm's average project. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 Year 2 $275,000 $400,000 $500,000 $400,000 Year 3 Year 4 Which of the following is the correct calculation of project Delta's IRR? O 1.86% 1.77% 2.23% 2.05%