Genetics Engineering is considering the purchase of some new equipment that will cost $300,000 installed. The equipment will produce a product that must be FDA approved and this will require at least two years. Year 1 and Year 2, the company will have net cash outflow of $95,000 and $50,000. Year 3 to 5, the company will generate set canh inflows of $200,000,$240,000, and $330,000. At the end of 5 years the equipmeat and the product will be obsolete. If the firm's costs of capital is 16%, should they invest in the new equipmean? No,NPV=$1,256 Yes,NPV=$2,072 Yes, NPV =$12,376 No, NPV =$12,170 A project requires certain investment X today. It's profitability index is 1.20 . The project is evaluated based on the tim's 13% cost of capital. Year 1 this project will generate cash inflow of $50,000. Thus cash flow will increase by $25,000 each year for years 2 through 5 . In other words, starting year 1 , the cash flow will be $50,000 and this will increase by additional $25,000 for years 2 through S. What is the project's Intemal rate of return, the IRR=? 21.76% 16.29% 1547% 20.01%