Consider the following cost and cash flows from Project X, which is one of two mutually exclusive projects:

year 0 ($800)

year 1 300

year 2 192

year 3 404

The cost of capital for the project is 13.6%. Your boss asks you for a recommendation using a capital budgeting technique comparing to the cost of capital. Having just finished the capital budgeting module in your finance class, you give her the decision based on the __________ method. Based on this method, will you accept the project and why (or why not)? (6pts)