ABC is considering an investment project that has the following cash flows:

CF0=-$1,000; CF1=400; CF2=300; CF3=500; CF4=400

The companys cost of capital is 10 percent. What is the projects discounted payback, internal rate of return (IRR), and net present value (NPV)?

a) Discounted Payback = 3.05, IRR = 21.22%, NPV = $260 b) Discounted Payback = 2.60, IRR = 21.22%, NPV = $260 c) Discounted Payback = 3.05, IRR = 21.22%, NPV = $300 d) Discounted Payback = 2.60, IRR = 10.00%, NPV = $300