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16. You are evaluating the following project: Year o 1 2 3 Cash Flow -$6,000 $8,800 $6,667 -$10,000 Suppose the cost of capital is 15%.

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16. You are evaluating the following project: Year o 1 2 3 Cash Flow -$6,000 $8,800 $6,667 -$10,000 Suppose the cost of capital is 15%. Which of the following statements are accurate about making the investment decision? 1. Since the NPV is positive (=$118.22), you should accept the project. II. Since the IRR (=10.1%) is less than the cost of capital, you should reject the project. III. You would prefer using the IRR to using the NPV when making an investment decision for this project. Only ! O I and II O I, II and III O II and

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