Which of the following statements about evaluating a single project where costs occur before benefits is FALSE? The internal rate of return (IRR) can provide information on how sensitive your analysis is to errors in the estimate of your cost of capital. o if you are unsure of your cost of capital estimate, it is important to determine how sensitive your analysis is to errors in this estimate. In an NPV profile that shows how NPV changes when cost of capital changes, NPV equals zero when the project discount rate equals IRR. If the cost of capital estimate is more than the internal rate of return (IRR), the net present value (NPV) will be positive. In general, the difference between the cost of capital and the internal rate of return (IRR) is the maximum amount of estimation error in the cost of capital estimate that can exist without altering the original decision