Blue Llama Mining Company is cvaluating a proposed copi tal budgeting project (project Sigma) that will require an initial imvestment of 5900,000. Elue Uama Mining Company has been basing capital budgeting decisions on a projects NPV; however, Its new CFO wants to shart using the IRQ method for capital budgeting dedsions. The CFO says that the iRR is a better method because returns in percentage form are easier to understand and compare to required returns. Blue Lama Mining Company's WACC is 9%, and project 5 igma has the sarme risk as the fimis average project. The project is expected to generate the following net cash fows: Which of the following is the corract calcufation of project sigma's IRR? 30,7251 2234 27.937 trin 37,12% If this is an indepandent project; the the method states that the firm showid If the project's cost of capital were to increase, how would that affect the IRR? The IRR would decrease. The IRR would not change, The IRR would increase