Q16

You are considering an investment with the following cash flows. If the required rate of return for this investment is 13.5 percent, should you accept the investment based solely on the internal rate of return (IRR) rule? Why or why not?

Year	Cash Flow
0	-$152,000
1	$98,200
2	$102,300
3	-$4,900

		Yes; The IRR is less than the required return
		You cannot apply the IRR rule in this case.
		No; The IRR is less than the required return
		No; The IRR exceeds the required return
		Yes; The IRR exceeds the required return