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If the initial outlay is 75,000 and the cashffow is 40,000 in year 130,000 in year 2 and 5000 in year three what would you do? Assume a cost of capital of 8%. There is not enough information Accept the project because the IRR is greater than the cost of capital Accept the project because the payback is only three years Reject the project because the NPV is negative 2 points If a project has a NPV of $5 and an IRR of 6% and a PI of 1.03 what should you do? Reject the project because the NPV is so low Reject the project because the IRR is so low Reject the project because the Plis so kow. Accept the groject. 9 2poins If theinitial outlay 5150,000 and a project is predicted to generate 50,000 ayear for the next five years with a cost of capital of 12% should the firm accept this project it their required payback period is two years? Yes because the payback period is longer than two years. No, because the paybackperiodis longer than two years. No, because the the paybackis shorter than two years. Yes, because the payback is storter than two vears