Blue Moose Home Builders is evaluating a proposed capital budgeting project (project Delta) that will require an initial investment of $1, 400,000. Blue Moose Home Builders 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 Moose Home Builders'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: Which of the following is the correct calculation of project Delta's IRR? 4.01% 4.41% 4.21% 4.81% If this is an independent project, the IRR method states that the firm should __________. If the project's cost of capital were to increase, how would that affect the IRR? The IRR would not change. The IRR would increase. The IRR would decrease