A proposed new venture will cost $175,000 and should produce annual cash flows of $48,500, $85,000, $40,000, and $40,000 for Years 1 to 4, respectively. The required payback period is 3 years and the discounted payback period is 3.5 years. The required rate of return is 9 percent. Which methods indicate project acceptance and which indicate project rejection?

a.

Accept: NPV, IRR, PI, payback;

Reject: discounted payback

b.

Accept: payback, PI;

Reject: NPV, IRR, discounted payback

c.

Accept: payback, discounted payback;

Reject: NPV, IRR, PI

d.

Accept: NPV, IRR, PI;

Reject: payback, discounted payback

e.

Accept: NPV, IRR;

Reject: PI, payback, discounted payback