Ralph has invented a new technology for making baseball bats. He

needs to raise $750,000 in capital to get his manufacturing operation

started. He estimates that this venture will generate an IRR of 14.5%. In

consecutive order, he goes to Banks X, Y and Z. Amongst the three

banks, he is able to raise the necessary funds. Banks X, Y and Z have

offered interest rates of 10%, 12% and 16%, respectively. Which one of

the following statements is correct?

A) Bank Z's 16% interest rate doesn't necessarily make the project a no-go.

B) Bank Z's 16% interest rate definitely makes this project a no-go.

C) The interest rates offered by Banks X and Y mean that this project is

absolutely, positively acceptable.

D) The percentage of the total lent by each of the banks is irrelevant in

determining whether this project is acceptable.