Eastchester Products is considering a project that requires an initial investment of $400,000 and will generate the following cash inflows for the next 4 years:

Year	Cash Inflow at End of Year
1	$150,000
2	$130,000
3	$180,000
4	$150,000

PV Factors for years 1, 2, 3 and 4 respectively, are .89286, .79719, .71178, and .63552

If the cost of capital is 12%, Eastchester Term 1 ___________________________

option a) should

option b) should not

option c) the net present value is positive

option d) the net present value is negative

, accept the project because Term 2 ____________________________

option a) should

option b) should not

option c) the net present value is positive

option d) the net present value is negative