A commercial building owner is evaluating an LED lighting retrofit. The owner's cost of capital is 8% and the project's IRR is 11%. What conclusion can be drawn?
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A
The project should be rejected because IRR exceeds the cost of capital
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B
The project adds value because IRR exceeds the minimum required return
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C
The project is borderline and requires further sensitivity analysis only
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D
The project should be deferred until energy prices rise above 11%