You Are Considering an Investment for Which You Require a 14

Multiple Choice

You are considering an investment for which you require a 14 percent rate of return. The investment costs $58,900 and will produce cash inflows of $25,000 for 3 years. Should you accept this project based on its internal rate of return? Why or why not?

A) Yes; because the IRR is 13.13 percent
B) Yes; because the IRR is 13.65 percent
C) Yes; because the IRR is 13.67 percent
D) No; because the IRR is 13.13 percent
E) No; because the IRR is 13.65 percent