Compute the IRR for Project X and Note Whether the Firm

Multiple Choice

Compute the IRR for Project X and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 9 percent. $$\begin{array} { l l l l l l l } \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { Cash flow: } & - 1000 & - 75 & 100 & 100 & 0 & 2000\end{array}$$

A) 9 percent, accept
B) 9 percent, reject
C) 16.61 percent, accept
D) 16.61 percent, reject