Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows:

Year

Cash Flow

$0$

$-$$$1,275,000$

$1$

$435,000$

$2$

$505,000$

$3$

$415,000$

$4$

$345,000$

In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are $$blocked$$ and must be reinvested with the government for one year. The reinvestment rate for these funds is $4\%.$ If the Anderson uses a required return of $12\%$ on this project, should you accept the project or not?

Group of answer choices

No$,$ because the IRR $10\mathrm{.}29\%<12\%$ as the required return

Yes, because the IRR $13\mathrm{.}18\%>12\%$ as the required return

Yes, because the $12\%$ required return $>10\mathrm{.}29\%$ of IRR

Yes, because the IRR $15\mathrm{.}18\%>12\%$ as the required return