A project with 4-year life with an initial investment of $10,000 will generate cash flows of $3,000 in year 1, $4,000 in year 2, $5,000 in year 3 and $2,000 in year 4. If the cost of capital is 10%, which of the followings is correct? Assume the cut off period is 3 years.

Net present value is $1,175.66 and the project should be accepted.

Internal rate of return is 13.23% and the project should be accepted.

Profitability index is 1.03 and the project should be accepted.

Payback period is 2.60 years and the project should be accepted.