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You are considering an investment for which you require a rate of return of 8.5 percent. The investment costs $67,400 and will produce cash inflows

You are considering an investment for which you require a rate of return of 8.5 percent. The investment costs $67,400 and will produce cash inflows of $25,720 for three years. Should you accept this project based on its internal rate of return? Why or why not?

No; because the IRR is 9.51 percent

Yes; because the IRR is 6.67 percent

Yes; because the IRR is 7.08 percent

Yes; because the IRR is 9.51 percent

No; because the IRR is 7.08 percent

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