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 $10\%$ on this project, should you accept the project or not?

Yes, because the IRR is greater than the required return $10\%$

Yes, because the IRR is greater than the $4\%$ reinvestment rate

No$,$ because $10\%$ is too low as a required return

No$,$ because you don't want to delay the future cash flows.