A firm has a cost of capital of 15%. Project A has a required return of 20% and an internal rate of return of 17%. Using the firm's cost of capital for decisions, would they accept project A? Is this a good decision?

Accept A; No - the expected return doesn't cover what investors require

Accept A; Yes - the required return is larger than the IRR

Reject A; Yes - the required return is larger than the cost of capital

Reject A; No - the required return is larger than the cost of capital