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(To answer this question, use the general problem information, as well as the cash flow data for Project Y, as given in the previous question.)

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(To answer this question, use the general problem information, as well as the cash flow data for Project Y, as given in the previous question.) Of the statements listed below, which one is NOT true regarding Project Y? The NPV of Project is positive. O Mrs. Johnson would be better off leaving $40,000 in her savings account instead of investing it in Project Y. Mrs. Johnson should avoid Project Y because, according to the NPV, she will not earn back her $40,000 investment if she moves forward with Project Y. O The IRR of Project Y is lower than 7% One of Mrs. Johnson's former students now works as an intermediary who connects investors to investment projects. This former student has approached Mrs. Johnson to propose two investment projects. The cash flows for these two investment projects are shown below. Year Project X Project Y 0 -$25.000 -$40,000 1 8,000 12,000 2 8,000 14.000 3 6,000 9,000 4 10.000 9,000 As it happens, Mrs. Johnson has allowed quite a bit of money to accumulate in a savings account that earns 7% per year. De account has $65,000 in it right now, which means she could undertake either or both of these projects. Each project is a single opportunity; in other words, she cannot choose to invest more than $25,000 in Project Xor more than $40,000 in Project Y. If Mrs. Johnson chooses one or both of these projects, she will move the required funds from her savings account to fund the project(s). Otherwise, she will leave the money in her savings account

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