The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $275,000 Year 2 $400,000 Year 3 $500,000 Year 4

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The project is expected to generate the following net cash flows:

Year	Cash Flow
Year 1	$275,000
Year 2	$400,000
Year 3	$500,000
Year 4	$400,000

Which of the following is the correct calculation of project Deltas IRR?

2.05%

1.67%

1.86%

1.95%

If this is an independent project, the IRR method states that the firm should ____________. (Reject or accept?) .

If the projects cost of capital were to increase, how would that affect the IRR?

A. The IRR would increase

B. The IRR would not change.

C. The IRR would decrease

The IRR would increase.

The IRR would not change.

The IRR would decrease.