4. You are considering an investment for which you require at least a 12.5 percent rate of return. The investment will cost $78,000 and produce cash inflows of $10,000 a year for 11 years. Should you accept this project based on its internal rate of return? Why or why not?
a. yes; because the IRR is 13.08 percent
b. yes; because the IRR is 12.81 percent
c. no; because the IRR is 6.22 percent
d. no; because the IRR is equal to 5.71 percent
e. no; because the IRR is 4.03 percent