A project has an initial cost of $100,000. The projects cost of capital is 12 percent and its net present value is $10,000. Which of the following statements is most correct?

I. The project should be rejected since its return is less than the WACC.

II. The projects modified internal rate of return is less than 12 percent.

III. The projects internal rate of return is greater than 12 percent.

A.

only II

B.

only III

C.

only I and III

D.

I, II and III

E.

only I