Technology Corp

Technology Corp. is considering a $200,000 investment in a new marketing campaign that they anticipate will provide annual cash flows of $52,000 for the next five years. The firm has a 10% cost of capital. What should the analysis indicate to the firm's managers?

A) IRR is between 9% and 10%.Accept the project.
B) IRR is between 9% and 10%.Reject the project.
C) IRR is between 10% and 11%.Accept the project.
D) Not enough information is given to determine an answer.