UT UL JU Hnion. However, the firm's short-run EPS will be reduced if it accepts Project B because no revenues will be generated for several years. a. Should the short-run effects on EPS influence the choice between the two projects? b. How might situations like this influence a firm's decision to use payback? 11-1 NPV Project L requires an initial outlay at t = 0 of $65,000, its expected cash inflows are $12,000 per year for 9 years, and its WACC is 9%. What is the project's NPV? IRR Refer to problem 11-1. What is the project's IRR? 11-2