why is the answer E ?

more than one IRR 11. Bryna of Benhoff Corporation is considering sponsoring a pavilion at the upcoming World's Fair. The pavilion would cost $800,000, and is expected to result in $6,000,000 of cash inflow for year 1. However, at the end of the second year, the pavilion would have to be demolished and the site returned to its original condition. This would cost the form $5,500,000. Thus, the pavilion project's cash flows are as follows: DIRRI-P0005, ODDDDD, 55000003) Year 0 = 6.9049% npu( 543%) = 3 2 - Net Cash Flow ($800,000) 1 $6,000,000 2 (5,500,000) D (30opal Which of the following statements is most CORRECT? a. The project should be accepted if the firm's cost of capital is 6.5 percent. b. The project has two IRRS (6.904869 percent and 543.095132 percent) so the project should be accepted if the firm's cost of capital is between 0 and 6.904869 percent. The project has two IRRS (6.904869 percent and 543.095132 percent) so the project should be accepted if the firm's cost of capital is less than or equal to 6.904869 percent or greater than or equal to 543.095132 percent. d. The project has two IRRS, (6.904869 percent and 594.392029 percent) so the project should be accepted if the firm's cost of capital is between 6.904869 and 594.392029 percent. The project should be accepted if the firm's cost of capital is 12 percent. Why? np = 172516