YEAR CASH FLOW

0 -59,000

1 12,000

2 24,000

3 22,000

4 13,000

Company Q is considering a project with the following cash flows. Should this project be accepted based on its internal rate of return if the required return is 11 percent?

A.Yes; the project's rate of return is 9.36 percent

B.No; the project's rate of return is 13.08 percent

C.No; the project's rate of return is 7.78 percent

D.Yes; the project's rate of return is 7.78 percent

E.No; the project's rate of return is 9.36 percent