Ginny is considering an investment costing $55,000 that has cash flows of $35,000 in Year 2, $36,000 in Year 3, and $5,000 in Year 4. She requires a rate of return of 8 percent and has a required discounted payback period of three years. Should this project be accepted? Why?

A. Yes; The project pays back on a discounted basis within the assigned time period and also produces a positive NPV.

B. No; The NPV indicates rejection as does DPB when all cash flows are considered.

C. No; Although the project earns more than 8 percent, there is no situation where the project can pay back on a discounted basis within three years.

D. Yes; The discounted payback requirement is met and other methods of analysis are less desirable.

E. No; The discounted payback period is too short.