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A project has cash flows of -$1,000. -$2,000, +$3,000, and+$4,000 in consecutive years. Your cost of capital is 30% perannum. Use the IRR rule to determine whether you should take thisproject and compare this result and approach with the net presentvalue method.My answer: please checkA project has cash flows of -$1,000. -$2,000, +$3,000, and+$4,000 in consecutive years. Your cost of capital is 30% perannum. Use the IRR rule to determine whether you should take thisproject and compare this result and approach with the net presentvalue method.Answer: The IRR for the project above is 56.00% which is higherthan the huddle rate of 30.00%. The NPV is negative 999.00, hence,we shouldn’t take this project forward.Cash flows($1,000)($2,000)$3,000$4,00056%IRR30.00%Cost of Cap.($999.00)NPV