A Company Is Considering a 5-Year Project

A company is considering a 5-year project.The company plans to invest $60,000 now and it forecasts cash flows for each year of $16,200.The company requires a hurdle rate of 12%.Calculate the internal rate of return to determine whether it should accept this project.Selected factors for a present value of an annuity of 1 for five years are shown below:
Interest rate Present value of an annuity of 1 factor
10% 3.7908
12% 3.6048
14% 3.4331

A) The project should be accepted.
B) The project should be rejected because it earns more than 10%.
C) The project earns more than 10% but less than 12%.If the hurdle rate is 12%, the project should be rejected.
D) Only 9% is acceptable.
E) Only 10% is acceptable.