f the internal rate of return is lower than the minimum required rate of return used in computing the net present value of an investment, the net present value will be:

		a. Negative
		b. Zero
		c. Unknown
		d. Positive

Anthony operates a part-time auto repair service. He estimates that a new diagnostic computer system will result in increased cash inflows of $17,000 in year 1, $25,000 in year 2, and $28,000 in year 3. If Anthony requires a return of 16% on all investment projects, then the most he would be willing to pay for the new computer system would be: (ignore taxes)

		a. $39,891
		b. $51,177
		c. $39,182
		d. $40,653