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%? Why or why not?

A) yes; because the IRR exceeds the required return by about 0.39%.
B) yes; because the IRR is less than the required return by about 3.9%.
C) yes; because the IRR is positive.
D) no; because the IRR exceeds the required return by about 3.9%.
E) no; because the IRR is 9.89%.