The following details are provided by Dopier Company: Which project has the highest profitability index? Project A Project B Project C Project D Which of the following best describes the term sensitivity analysis? setting the budgets of an investment analyzing the effect of an investment on workers' morale evaluating different investment options testing the results of an investment analysis with varying assumptions Which of the following is the rate of return, based on discounted cash flows, that a company can expect to earn by investing in a capital asset? accounting rate of return (ARR) bank interest rate internal rate of return (IRR) return on investment Which of the following best describes the internal rate of return? discount rate at which the cost of the investment equals the present value of the net cash inflows from the investment discount rate that is used to evaluate funds borrowed from a lender for profitability the ratio of average annual income to average amount invested the rate at which the profitability of an investment increases At the internal rate of return (IRR), the present value of cash inflows will be equal to: initial investment residual value average operating income profit from the project. A company is considering an iron ore extraction project which requires an initial investment of $1,000,000 and will yield annual cash flows of $350, 263 for 4 years. The company's hurdle rate is 9%. Calculate IRR. 15% 18% 12% 10%