An investment costs $148,000 and has projected cash inflows of $72,100, $87,400, and -$11,100 for Years 1-3, respectively. If the required rate of return is 14.5 percent, should you accept the investment based solely on the internal rate of return rule? Why or why not?

Multiple Choice

Yes; The IRR exceeds the required rate of return.

No; The IRR exceeds the required return.

You should not apply the IRR in this case.

No; The IRR is less than the required rate of return.