Q4. please show work and explain!

Question 4 7 pts Basil Corp. evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year Cash Flow 0 -$27,500 1 11,500 1 2. 14,500 3 10,500 If the required return is 16 percent, should the firm accept the project based on the IRR rule and why? Reject the project because the IRR (17.71%) is above the required return Reject the project because the IRR (15.81%) is below the required return Accept the project because the IRR (15.81%) is below the required return The IRR rule is not an acceptable rule to use to evaluate this project. Accept the project because the IRR (17.71%) is above the required return