Evaluate the Following Project Using an IRR Criterion, Based on an Opportunity

Multiple Choice

Evaluate the following project using an IRR criterion, based on an opportunity cost of 10 percent: CF₀ = -6,000, CF₁ = +3,300, CF₂ = +3,300.

A) Accept, since IRR exceeds opportunity cost
B) Reject, since opportunity cost exceeds IRR
C) Accept, since opportunity cost exceeds IRR
D) Reject, since IRR exceeds opportunity cost