PJ Company is purchasing a production facility at a cost of $21.00 million. The firm expects the project to generate annual cash flows of $7 million over the next five years. Its cost of capital is 18 percent. Should the firm accept this project?

No, because its IRR is 19.86%

Yes, because its NPV is $0.89 million

No, because its discounted payback period is 3 year

Yes, because its discounted payback period is 3 years

No, because its NPV is -$0.89 million