Motor City Productions Sells Original Automotive Art on a Prepaid $$\begin{array} { c c } \frac { \text { Year } } { 0 } & \frac { \text { Cash Flow } } { \$ 5,500 } \\1 & - \$ 5,900\end{array}$$

Motor City Productions sells original automotive art on a prepaid basis as each piece is uniquely designed to the customer's specifications.For one project,the cash flows are estimated as follows.Based on the internal rate of return (IRR) ,should this project be accepted if the required return is 9 percent? $$\begin{array} { c c } \frac { \text { Year } } { 0 } & \frac { \text { Cash Flow } } { \$ 5,500 } \\1 & - \$ 5,900\end{array}$$

A) Accept the project.
B) Reject the project.
C) The IRR cannot be used to evaluate this type of project.
D) The firm should be indifferent to either accepting or rejecting this project.
E) Insufficient information is provided to make a decision based on IRR.