Aproject has the following incremental cash flows for years zero through year 5 respectively: -$2,500, $800, $600, $700, $400 and $300. if the firm's cost of capital is 8%, according to the irr decision rule, should the firm accept or reject this project and why? a. the project should be accepted because the irr is above the cost of capital. b. the project should be rejected because the irr is less than the npv. c. the project should be rejected because the irr is less than the cost of capital. d. the project should be accepted because the irr is greater than the npv.

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?