A Proposed Project Has an Initial Cost of $38,000 and Cash

Multiple Choice

A proposed project has an initial cost of $38,000 and cash inflows of $12,300, $24,200, and $16,100 for Years 1 through 3, respectively. The required rate of return is 16.8 percent. Based on IRR, should this project be accepted? Why or why not?

A) No; The IRR exceeds the required return.
B) No; The IRR is less than the required return.
C) Yes; The IRR exceeds the required return.
D) Yes; The IRR equals the required return.
E) No; The IRR equals the required return.