Assume that your organization's CFO has just completed a presentation to the board of trustees concerning the analysis of a proposed ambulatory surgery center costing $2 million. During the presentation, the CFO indicated that the project had an NPV of $786,339 and an IRR of 17.3 percent. Based on its risk, the project was judged to have a cost of capital of 13 percent. Which of the following statements is most correct?

• A. The project is financially acceptable because its NPV is positive.
• B. The project is financially acceptable because its IRR is greater than zero.
• C. The project is financially unacceptable because its NPV is less than the project's initial investment cost.
• D. The project is financially unacceptable because its IRR is greater than its cost of capital.
• E. The project is financially unacceptable, but it may have sufficient social value to make it worthwhile.