FOR THIS AND THE NEXT QUESTION. Consider the project cash flows below. Cost of capital is 7%. What is your capital budgeting decision?

Year	Cash Flow
0	-$7.50
1	45.00
2	-40.00

A. Accept the project. IRR is 8.51% and is greater than the cost of capital

B. Reject the project. IRR is 8.51% and is less than the cost of capital

C. Accept the project. NPV is $0.3815

D. Accept the project. MIRR is 6.52%

E. Reject the project. NPV is -$0.3815

F. None of the above

QUESTION 8

If the NPV profile of the above project is constructed, the profile would intersect the x-axis at

A. Approximately 390%

B. Approximately 9.8%

C. Approximately 6.5%

D. None of the above