5. Your project team is evaluating a project with a required return of 8.50 percent. The project has an initial cost of $120,000 and generates cash inflows of $50,000, $60,000, and $30,000 for Years 1 to 3, respectively. Should you accept the project? Why or Why not?

Yes; because the IRR exceeds the required return by 0.27 percent (correct)

No; because the IRR is only 8.77 percent

Yes; because the IRR is less than the required return by 0.27 percent

No; because the IRR exceeds the required return by 0.27

Please show a detailed explanation the correct answer is provided. If you could please demonstrate it in excel with the functions