1. A project will produce operating cash flows of $19,000 per year for the next 4 years. The initial fixed asset investment in the project will be $62,000. The net after-tax salvage value is estimated at $9,500 and will be received during the last year of the projects life. Assuming the projects required return is 14 percent, should it be accepted based only on its internal rate of return?

1. Yes; the IRR of 15.31 percent is greater than the required return.
2. Yes; the IRR of 14.95 percent is greater than the required return.
3. Yes; the IRR of 12.87 percent is less than the required return.
4. No; the IRR of 13.25 percent is less than the required return.
5. No; the IRR of 12.87 percent is less than the required return.