Shanghai Shipping Is Considering Investing in a Project That Requires

Shanghai Shipping is considering investing in a project that requires an after-tax initial investment of 156 million and is expected to produce after-tax cash inflows of $40 million for each of the next five years.The firm's cost of capital is 10%.Based on this information, the IRR of the project is _________ percent and the firm should _________ the project.

A) 9.9; accept
B) -9.9, reject
C) 8.9, accept
D) -8.9, reject
E) none of the above