Jesses Machining is looking to buy a new machine to handle a new four-year contract for machining windmill blades. The bookkeeper has provided the following information about the project. Jesse, the owner, says he will finance the machine at the local bank, which will charge 11% interest on the four-year loan. The machine requires a $1,500 annual maintenance payment, and will have a scrap value at the end of year four of zero.

Year	Outflows	Inflows
2019	$49,500	$0
2020	$1,500	$15,500
2021	$1,500	$17,775
2022	$1,500	$18,835
2023	$1,500	$19,984
Total	$55,500	$72,094

Which of the following is correct?

	A.	All answers are correct.
	B.	The payback period is less than four years
	C.	The NPV is $1,173
	D.	The IRR is greater than the loan rate