Consider the case of Blue Lams Mining Company: Blue Lama Mining Company is evalusting a proposed capital budgeting project (project Sigma) that will require an initial investment of $500,000. Blue Lama Mining Company has been basing capital budgeting decisions on a project's NPV; however, its new CFO wants to start using the IRR. methad for capital budgeting decisions. The CFO says that the IRR. is a better methad because returns in percentage form are easier to understand and compare to required returns. Blue Lama Mining Company's W.ACC is 7%, 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 caleulation of project Sigma's IRR? 37.31%27.96%26.43%31.09% If this is an independent project, the IRR. method states that the firm should If the project's cost of capital were to incresse, how would that affect the IRR? The IRR would inerease. The IRR. would not change. The IRR. would decresse