A project has an initial cash inflow of $40,800 and a cash outflow of $44,900 in Year 1. The discount rate is 10 percent. Should this project be accepted or rejected based on IRR? Why?

Multiple Choice

• Accepted, because the IRR is greater than the discount rate.

• Rejected, because the IRR is greater than the discount rate.

• Rejected, because the IRR is less than the discount rate.

• Accepted, because the IRR is less than the discount rate.

• Accepted, because the IRR equals the discount rate.