One of Mrs. Johnson's former students now works as an intermediary who connects investors to investment projects. This former student has approached Mrs. Johnson to propose two investment projects. The cash flows for these two investment projects are shown below. Year Project X Project O -$25.000 -$40,000 1 8,000 12.000 2 8,000 14,000 3 6,000 9.000 10,000 9,000 As it happens, Mrs. Johnson has allowed quite a bit of money to accumulate in a savings account that earns 7% per year. The account has $65,000 in it right now, which means she could undertake either or both of these projects. Each project is a single opportunity: In other words, she cannot choose to invest more than $25,000 in Project Xor more than $40,000 in Project Y. If Mrs. Johnson chooses one or both of these projects, she will move the required funds from her savings account to fund the project(s). Otherwise, she will leave the money in her savings account. Mrs. Johnson sees this as a perfect opportunity to test her current students' skills at evaluating investment alternatives. Here's your chance to show her what you've learned. Evaluate these two projects using net present value and internal rate of return and use your calculations to answer the next two questions. Of the statements listed below, which one is NOT true regarding Project X? Mrs. Johnson should avoid Project X because, according to the NPV, she will not earn back her $25,000 investment if she moves forward with Project X. Mrs. Johnson would be better off pulling $25,000 from her savings account and investing it in Project X The IRR of Project X is higher than 7%. The NPV of Project X is positive