Consider a project that requires an initial investment of $5.0 million at time zero. The expected net cash inflows over the five-year life of the project are as follows: $1.2 million at the end of year 1;$1.4 million at the end of year 2,$1.6 million at the end of year 3,$1.8 million at the end of year 4 : and $2.4 milion at the end of year 5 . If the cost of capital for the project is 14 percent, what is the intemal rate of return (IRR) for the project? 14.8% 12.2% 17.8% 16.4 Question 11 7.5pts Consider a project that requires an initial investment of $5.0 million at time zero. The expected net cash inflows over the five-year life of the project are as follows: $1.2 million at the end of year 1:\$1.4 millign at the end of year 2:\$1.6 million at the end of year 3;\$1.8 million at the end of year 4 : and $2.4 million at the end of year $. If the cost of capital for the project is 14 percent, what is the discounted payback period for the project? 3.86 years 3.44 years 4.58 years 267 years Question 12 7 pts Projects S and L are equally risky, mutually exclusive, and have normal cash flows. Project S has an IRR of 15%, while Project L'S IRR is 12%. The two projects have the same NPV when the WACC is 7%. Which of the following statements is CORRECT? If the WhCC is 13K, Project 5 will have the lower NPV If the WACC in 10K, both projects will have ponitive NPV If the WACC is 10K, both profects will have a negative NPV If the WACC is GK, Project 5 will have the higher NPV