You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in millions of dollars) for the project are as follows:

Years Cashflow

0 -100

1-10 +15

On the basis of the behavior of the firms stock, you believe that the beta of the firm is 1.49. Assume that the rate of return available on risk-free investments is 4% and that the expected rate of return on the market portfolio is 13%.

What is the project IRR?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

What is the cost of capital for the project?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

Does the accept-reject decision using IRR agree with the decision using NPV?