A proposed project has an initial cost of $38,000 and annual operating cash flows of $12,300, $24,200, and $16,100 for Years 1 through 3, respectively. The project has no terminal cash flow. The required rate of return is 16.8 percent. Based on NPV, should this project be accepted? Why or why not?

A. No; The NPV equals the IRR.

B. No; The NPV is negative.

C. No; The NPV is positive.

D. Yes; The NPV equals 0.

E. Yes; The NPV is positive.