E11-5 (Static) Analyzing Relationship between Net Present Value and Internal Rate of Return [LO 11-3, 11- 4) Consider the relationship between a project's net present value (NPV), its internal rate of return (IRR), and a company's cost of capital. For each scenario that follows, indicate the relative value of the unknown. If cost of capital is unknown, indicate whether it would be higher or lower than the stated IRR. If NPV is unknown, indicate whether it would be higher or lower than zero. Project 1 is shown as an example. Net Present Value Cost of Capital - 13 % Internal Rate of Return - 13 % 10 % 12 % 14 Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 > 0 10 %