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You are considering a project X which has cash flows given below: Year 0 Year 1 Year 2 Project X ($3,500) $18,000 ($18,000) Project X

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You are considering a project X which has cash flows given below: Year 0 Year 1 Year 2 Project X ($3,500) $18,000 ($18,000) Project X has two IRRs, and its cost of capital is 15%. Which of the following statements best describes Project X? (Hint: draw NPV profile) O No matter what its cost of capital is, it should be rejected. If the cost of capital would be between the two IRRs, it could be accepted, All of these statements are not consistent with Project X O Since both IRRs are greater than its cost of capital, it should be accepted. O No matter what its cost of capital is, it should be accepted

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