Compute the Regular Payback Period (RPP) and MIRR for these cash flows, assuming WACC = 8%. What decision should you make if your Board of Directors mandates a payback period of no more than 48 months?

Year: 0 1 2 3 4

Cash Flow: -$10,000 $2050 $2250 $3850 $4750

A. 3.0; 7.4%; Accept on the basis of MIRR

B. 3.6; 9%; Reject on the basis of RPP

C. 3.4; 7.4%; Accept on the basis of RPP

D. 3.4; 9%; Accept on the basis of MIRR