Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 10 percent, and that the maximum allowable payback and discounted payback statistics for the project are three and a half and four and a half years, respectively. Use the IRR decision to evaluate this project; should it be accepted or rejected?

Time	0	1	2	3	4	5	6
Cash flow	-85,000	12,000	11,000	13,000	21,000	31,000	32,000

A) IRR = 16.92 percent; accept the project

B) IRR = 7.123 percent; reject the project

C) IRR = 8.81 percent; reject the project

D) IRR = 10.59 percent; accept the project