A new project requires an initial investment of $12,000 today and is expected to generate cash flows of $1,650 per year for the next 10 years. The firm has a cost of capital or required rate of return of 8 percent. Should this project be accepted, and why? Use the IRR criterion. Notice all CFs from t=1 to t= 10 are equal. 6.25 IRR = 5.10% 8.00% Accept IRR = 8.45% > 8.00% Accept