You are considering an investment with the following cash flows. If the required rate of return for this investment is 13.5%, should you accept it based solely on the internal rate of return rule? Why or why not?
Year Cash Flow
0 -$12,000
1 $5,500
2 $8,000
3 -$1,500
a. yes; because the IRR exceeds the required return
b. yes; because the IRR is a positive rate of return
c. no; because the IRR is less than the required return
d. no; because the IRR is a negative rate of return
e. You can not apply the IRR rule in this case because there are multiple IRRs

answer; ///deficit;

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since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.