Blue llama Mining Company is evaluating a proposed capital budgeting project (project Delta) that will require an initial investment of $1,600,000 Blue Llama Mining Company has been basing capital budgeting decisions on a project's NPv; however, its new Crowanits 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 9%, 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 Year 1 Year 2 Cash Flow $350,000 $475,000 $425,000 $500,000 Year 3 Year Which of the following is the correct calculation of project Delta's IRR? 2.99% 3.179 0 3.70% O 3.52% if this is an independent project, the IRR method states that the firm should Ir the project's cost of capital were to increase, how would that affect the IRRY The IRR would increase The IRR would decrease The IRR would not change