A project has an initial cash inflow of $95,500 and cash flows of -$48,700 in Year 1 and -$57,200 in Year 2. The discount rate is 9 percent. Should this project be accepted or rejected based on IRR? Why?
a) Accepted: because the IRR of 6.98 percent is less than the discount rate
b) Accepted: because the IRR of 8.21 percent is less than the discount rate
c) Accepted: because the IRR of 8.78 percent is less than the discount rate
d) Rejected: because the IRR of 8.21 percent is less than the discount rate
e) Rejected: because the IRR of 6.98 percent is less than the discount rate