Given the following sensitivity analysis, which of the following statements is true?

Line Item Description	Amount	Amount	Amount
Estimated Annual Net Cash Flow	$500,000	$600,000	$700,000
Present value of annual net cash flows ( 4.487)	$2,243,500	$2,692,200	$3,140,900
Present value of residual value	50,000	50,000	50,000
Total present value	$2,293,500	$2,742,200	$3,190,900
Amount to be invested	(3,000,000)	(3,000,000)	(3,000,000)
Net present value	$(706,500)	$(257,800)	$190,900

a.Only an annual net cash flow of $700,000 will allow for a positive residual value.

b.The annual net cash flow necessary to generate a positive net present value is above $700,000.

c.The total amount to be invested is $3,050,000.

d.The investment is not justified if the annual net cash flow will be $500,000 or $600,000.