You Are Analyzing a Project and Have Gathered the Following

Multiple Choice

You are analyzing a project and have gathered the following data: $$\begin{array} { l r l } \frac { \text { Year } } { 0 } & \frac { \text { Cash flow } } { } & \\1 & - \$ 175,000 & \\2 & \$ 56,400 & \\3 & \$ 61,800 & \\4 & \$ 72,000 & \\\text { Required payback period } & 2.5 \text { years } \\\text { Required AAR } & 11.5 \text { percent } \\\text { Required return } & 14.5 \text { percent }\end{array}$$ Based on the internal rate of return of _____ percent for this project,you should _____ the project.

A) 14.67; accept
B) 17.91; accept
C) 14.67; reject
D) 17.91; reject
E) 18.46; reject