You Are Considering an Investment for Which You Require a Rate

Multiple Choice

You are considering an investment for which you require a rate of return of 8.5 percent.The investment costs $ 53,500 and will produce cash inflows of $20,000 for three years.Should you accept this project based on its internal rate of return? Why or why not?

A) Yes; because the IRR is 5.96 percent
B) Yes; because the IRR is 9.56 percent
C) Yes; because the IRR is 8.50 percent
D) No; because the IRR is 9.56percent
E) No'; because the IRR is 5.96 percent