$6.$ Should the following project be accepted if the company requires both a

payback on discounted cash flows within three years $($assuming a hurdle rate of $11\%)$ AND a

payback on nominal dollars within three years?

Project cash flows are:

Cost of the project in year zero is $$60,000$

End of year one inflow $=25,000$

End of year two inflow $=30,000$

End of year three inflow $=35,000$

End of year four inflow $=40,000$

Group of answer choices

a$.$ Yes, the project should be accepted because both the undiscounted and discounted payback periods are less than three years.

b$.$No$,$ while the undiscounted cash flow payback is less than three years the payback for discounted cash flows exceeds three years.

c$.$ No$,$ while the discounted cash flow payback is less than three years the payback for undiscounted cash flows exceeds three years.

d$.$ No$,$ both the undiscounted and discounted cash flow paybacks exceed three years.