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 9.5 percent? Why or why not?

A) Yes; because the IRR exceeds the required return by about 0.39 percent.
B) Yes; because the IRR is less than the required return by about 3.9 percent.
C) Yes; because the IRR is positive.
D) No; because the IRR exceeds the required return by about 3.9 percent.
E) No; because the IRR is 9.89 percent.