Blue Moose Home Builders is evaluating a proposed capital budgeting project (project Sigma) that will require an initial investment of $900,000. 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 returns in percentage form are easier to understand and compare to required returns. Blue Moose Home Builders's WACC is 9%, and project Sigma 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 Year Cash Flow Sigma's IRR? Year 1 $300,000 O 27.27% Year 2 $425,000 O 21.82% Year 3 $475,000 O 25.91% Year 4 $450,000 O 24.54% If this is an independent project, the IRR method states that the firm should reject project Sigma accept project Sigma