$(10)$ You are evaluating a project with projected cash inflows of $$72,000,$$$85,500,$ and $-$$$16,200$ for Years $1-3,$ respectively. The project will cost $$136,000$ to launch. If the required rate of return is $12\mathrm{.}0$ percent, should you accept the investment based solely on the internal rate of return rule? Why or why not?

Multiple Choice

No; The IRR exceeds the required return.

$$ Yes; The IRR is less than the required rate of return.

$$ You should not apply the IRR in this case.

$$ Yes; The IRR exceeds the required rate of return.