8.

Tottenham Machines, Inc., is trying to evaluate a project with the following cash flows:

Year	Cash flows
0	-$36,300
1	$10,600
2	$13,700
3	$16,800

If the company apply the IRR decision rule , should the company accept the project? Why or why not? Assume the required rate of the return is 8 percent.

Group of answer choices

No; The IRR exceeds the required return by about 2 percent.

Yes; The IRR less than the required return by about 0.6 percent.

Yes; The IRR is equal to required return.

Yes; The IRR exceeds the required return by about 0.6 percent.

No; The IRR is less than the required return by about 2 percent.