Please analyze the following project. All cash flows are in millions, they are assumed to be after-tax and they occur evenly over each year. The client requires a 20% rate of return.

Year	Cash Flow	Discounted Cash Flows
0	-4,500
1	1,500
2	1,700
3	4,500
IRR
NPV

Based on your analysis, which one of the following statements is correct?

Multiple Choice

• You should accept the Project since the Payback is very short

• You should reject this Project, since its IRR greater than the hurdle rate of 20%.

• You should accept this Project, since its NPV is positive

• You should call in a consultant with more experience than yourself