An Investment Has the Following Cash Flows

Multiple Choice

An investment has the following cash flows. Should the project be accepted if it has been assigned a required return of 14 %? Why or why not?

A) No; The IRR exceeds the required return by about 1.08 %.
B) No; The IRR is less than the required return by about 0.97 %.
C) Yes; The IRR exceeds the required return by about 1.08 %.
D) Yes; The IRR is less than the required return by about 0.97 %
E) Yes; The IRR is less than the required return by about 1.08 %.