The Carnation Chemical Company is investing in an incinerator to dispose of PCB waste. The incinerator costs $15 million and will generate end of year cash flows of $6 million for 3 years, then 500,000 for an additional 3 years. The internal rate of return for this project is: between 9% and 12% between 12% and 15% between 3% and 6% between 6% and 9% You are trying to decide between three mutually exclusive investment opportunities. The most appropriate tool for identifying the correct decision is: O profitability index. payback period. net present value (NPV). internal rate of return (IRR).