Bridgewater Fountains Is Considering Expanding Its Current Line of Business

Multiple Choice

Bridgewater Fountains is considering expanding its current line of business and has developed the following expected cash flows for the project. Should this project be accepted based on the
Discounting approach to the modified internal rate of return if the discount rate is 9.6 percent? Why
Or why not?

A) Yes; The IRR is 9.11 percent.
B) Yes; The IRR is 11.87 percent.
C) Yes; The IRR is 11.99 percent.
D) No; The IRR is 11.87 percent.
E) No; The IRR is 11.99 percent.