A Firm Is Considering a Project with the Following Cash

Multiple Choice

A firm is considering a project with the following cash flows: Time 0 = +$20,000,Years 1-5 = −$4,500.Should the project be accepted if the cost of capital is 10%?

A) Yes; The IRR of the project is 4.06%.
B) Yes; The IRR of the project is 12.5%.
C) No; The IRR of the project is 4.06%.
D) No; The IRR of the project is 12.5%.