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

Year Cash Flow

0 -12,000

1 5,500

2 8,000

3 -1,500

		No; because the IRR is a negative rate of return
		Yes; because the IRR is a positive rate of return
		You can not apply the IRR rule in this case because there are multiple IRRs.
		No; because the IRR is less than the required return