ABC Corporation wants to investment in a new equipment with a cost of $1.25 million. The new equipment is expected to general cash inflows of $175,000 the first year and $500,000 for the next three years. The companys minimum require rate of return is 10 percent. Should ABC corporation invest in this new equipment based on its IRR? Why or why not?

Yes, because the IRR is 10.75 percent

Yes, because the IRR is 11.28 percent

No, because the IRR is 10.75 percent

No, because the IRR is 11.28 percent