Concept Question . If the net present value of a series of discounted cash flows is less than zero, one could conclude that: 1. The discounted cash flows are lower than the investment outlay. 2. The rate of return is higher than the cost of capital. 3. The return on investment is higher than the internal rate of return. 4. The internal rate of return equals the discount rate. A. 2 and 3. B. 2 only. C. 1 only. D. 1 and 4