4 sub questions allowed, please answer all! Its just MC, no work required.

Use the following information for Questions 12 16.

It is May, 2022 and you have recently graduated with a degree from Kwantlen Polytechnic University. As your first assignment, a firm has asked you to analyze the following project. All cash flows are in millions, they are assumed to be after-tax and they occur evenly over each year. The client requires a 15% rate of return.

Year	Cash Flow	Discounted Cash Flows
0	-3,000
1	1,000
2	1,500
3	1,500
IRR
NPV

Payback for this Project is:

A) The Project has a payback of 2.33 years, B) Project A has a payback of 2.50 years, C) Project A has a payback of 2.00 years, D) Project A has a payback of 2.62 years

The discounted payback for this Project is (given a 15% discount rate):

A) Project A has a payback of 2.00 years B) The discounted payback is more than three years. C) Project A has a payback of 2.62 years D) Project A has a payback of 2.50 years

The NPV for this Project is (given a 15% discount rate):

A) The Project has an NPV of $21.88 B) The Project has an NPV of $-9.94 C) The Project has an NPV of $8.55 D) The Project has an NPV of $9.63

The IRRs for this Project is:

A) The Project IRR is -17.44% B) The Project IRR is 17.44% C) The Project IRR is 12.13% D) The Project IRR is 14.81%

Based on your analysis, which one of the following statements is correct?

• You should accept the Project since the Payback is very short

• You should call in a consultant with more experience than yourself

• You should reject this Project, since its NPV is negative

• You should reject this Project, since its IRR greater than the hurdle rate of 15%