A Company Is Considering a 5-Year Project A) the Project Should Be Accepted

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: $$\begin{array} { c c } \text { Interest rate } & \text { Present value of ard annuity } \\ & \text { of } \$ 1 \text { factor for year } 5 \\10 \% & 3.7908 \\12 \% & 3.6048 \\14 \% & 3.433\end{array}$$

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