You are considering an investment that costs $152,000 and has projected cash flows of $71,800, $86,900, and -$11,200 for years 1 to 3, respectively. If the required rate of return is 15.5 percent, should you accept the investment based solely on the internal rate of return rule? Why or why not?

Yes; The IRR exceeds the required return.

No; The IRR exceeds the required return.

You cannot apply the IRR rule in this case.

Yes; The IRR is less than the required return.