Radiant Dental Clinic is considering acquisition of sophisticated new x-ray equipment costing $100,000. The present value of expected net cash flows (except for purchase cost) from this equipment is $120,000 when discounted at 13%. From this information, we can conclude that the

net cash flows will occur evenly over the equipment's life

expected rate of return is greater than 13%

life of the equipment is less than 6 years

company should reject this investment