An investment has the following cash flows. Should the project be accepted if it has been assigned a required return of 9.5%? Why or why not?

Year Cash Flow

0 ...........................................................–$24,000

1 ..............................................................$ 8,000

2............................................................. $12,000

3 ..............................................................$ 9,000

A. Yes; because the IRR exceeds the required return by about 0.39%

B. Yes; because the IRR is less than the required return by about 3.9%

C. Yes; because the IRR is positive

D. No; because the IRR exceeds the required return by about 3.9%

E. No; because the IRR is 9.89%