A company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $210,000. The present value of the future cash flows is $225,000. The companys desired rate of return used in the present value calculations was 12%. Which of the following statements is true?

Group of answer choices

The internal rate of return on the project is less than 12%.

The internal rate of return on the project is equal to 12%.

The internal rate of return on the project is more than 12%.

The project should not be accepted because the net present value is negative.