A Project Has an Initial Cash Inflow of $95,500 and Cash

Multiple Choice

A project has an initial cash inflow of $95,500 and cash flows of -$48,700 in Year 1 and -$57,200 in Year 2.The discount rate is 9 percent.Should this project be accepted or rejected based on IRR? Why?

A) Accepted: because the IRR of 6.98 percent is less than the discount rate
B) Accepted: because the IRR of 8.21 percent is less than the discount rate
C) Accepted: because the IRR of 8.78 percent is less than the discount rate
D) Rejected: because the IRR of 8.21 percent is less than the discount rate
E) Rejected: because the IRR of 6.98 percent is less than the discount rate