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6. (NUMERICAL) An investment has the following cash flows and a required return of 13 percent. Based on IRR, should this project be accepted? Why

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6. (NUMERICAL) An investment has the following cash flows and a required return of 13 percent. Based on IRR, should this project be accepted? Why or why not? Year Cash Flow 0 -$42,000 1 15,300 2 28,400 3 7,500 A. No; The IRR exceeds the required return by about 0.06 percent. B. No; The IRR is less than the required return by about 1.53 percent C. Yes: The IRR exceeds the required return by about 0.06 percent. D. Yes; The IRR exceeds the required return by about 1.53 percent. E. Yes: The IRR is less than the required return by about 0.06 percent

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