The internal rate of return is defined as the: a) rate at which the net present value of a project is equal to zero. b) rate of return a project will generate if the project in financed solely with internal funds. c) rate that equates the net cash inflows of a project to zero. d) maximum rate of return a firm expects to earn on a project. e) rate that causes the profitability index for a project to equal zero. Use the following information for the next four questions: The Umbrella Corporation is considering expanding one production facilities to research a new types of virus, that will hopefully not result in another zombie outbreak. The project would require an $15,000,000 capital investment and will be depreciated (straight-line to zero) over its 3 year life. They know that they able to salvage $3, 500,000 for the equipment at that time. Incremental sales are expected to be $12, 750,000 annually for the 3 year period with costs (excluding depreciation) of 30% of sales. The company would also have to commit initial working capital to the project of $4, 325,000. The company has a 35% tax rate, and requires a 10% rate of return for projects of this risk level. Project cash flow (Cash Flow From Assets for Year 0 is: a) $16,000,000 b) -$16,000,000 c) -$17,000,000 d) -$17, 300,000 e) -$21,000,000 Project cash flow (Cash Flow From Assets) for 1 year 1 is: a) $5, 800, 600 c) $4, 756, 384 c) $7, 800, 231 d) $6, 800, 470 e) $7, 551, 250