The internal rate of return is the discount rate that yields an NPV of zero. Will the IRR for projects Y and Z be higher or lower than the discount rate of 8% used in the tables below to calculate net present value? Which Project will have the higher IRR?

Project Y Cash Flow PV factor Present Value $100,149 .9259 $100,149 $50,493 $134,337 .8573 .7938 $92,728 $85,858 $40,081 $98.738 .7350 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Totals Amount invested Net present value $134,337 .6806 $172,993 .6302 $91,430 $109,020 $517,855 ($300,000) $217,855 Project Z Cash Flow PV factor Present Value .9259 .8573 $95,748 $95,748 $9,618 $138,449 $138,449 $88,653 $82,085 $7,635 .7938 .7350 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Totals Amount invested Net present value $101.760 .6806 $94.228 $187.329 .6302 $118,055 $492,416 ($300,000) $192,416