You receive an offer to produce a documentary for a company. You will first receive a $50,000 upfront payment if you take the offer. Then you will spend the next three years working on the project, and estimate the time you spend on the project will cause you to give up income from other jobs amounting to $40,000 per year. In the fourth year when the project is done, you will receive another payment of $80,000.

Can we use the IRR rule to evaluate this offer?

A. Yes. IRR rule will lead you to the correct decision.

B. No. Because the NPV curve is upward sloping.

C. No. Because there are multiple IRRs for this project

D. No. Because there is no IRR for this project.