An analyst determined that an independent, financing$-$type project has an IRR of $18\mathrm{.}7$ percent. The firm's required rate of return is $15$ percent. The analyst can reasonably conclude that

Top of Form

Multiple Choice

the initial cash flow is negative.

the cash flows are conventional.

the NPV is positive.

the decision to accept or reject cannot be based on the IRR.

the project should be rejected.

Bottom of Form