Transport Inc. needs to purchase a fleet of semi-trailers. Transport can either purchase new trailers that will produce $80,000 per year for seven years, or used trailers that will produce $50,000 per year for seven years. The new trailers have a purchase price of $500,000 and they can be salvaged at the end of seven years for $300,000 The used trailers cost $200,000 and have no salvage value. Which project has the higher IRR? If the cost of capital is 8.5%, which project has the higher NPV? Which project should Transport choose? IRR new > IRR used: NPV used > NPV new, choose new IRR new > IRR used: NPV used > NPV new; choose used IRR used > IRR new: NPV new > NPV used; choose new DO IRR used > IRR new; NPV new > NPV used; choose used