You are considering an investment with the following cash flows. If the required rate of return for this investment is 15.25 percent, should you accept the investment based solely on the internal rate of return rule? Why or why not?

Year

Cash Flow

0

-137,900

1

82,400

2

67,300

3

-2,500

No; The IRR is less than the required return.

Yes; The IRR exceeds the required return.

No; Because there are multiple IRRs.

Yes; The IRR is less than the required return.