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%: C₀ = -$6,000, C₁ = $3,300, C₂ = $3,300.

A) Accept; because the IRR exceeds the opportunity cost
B) Reject; because the opportunity cost exceeds the IRR
C) Accept; because the opportunity cost exceeds the IRR
D) Reject; because the IRR exceeds the opportunity cost