Snowbound Tours is considering investing $5,650,000 in a new lodge on the Tanana River. Management projects 15 years of cash flows per the chart below. Using a discount rate of 9.65%, management should:

Year Cash Flow Year Cash Flow

1 260,000 9 980,000

2 340,000 10 965,000

3 505,000 11 920,000

4 610,000 12 890,000

5 790,000 13 840,000

6 1,200,000 14 720,000

7 1,295,000 15 690,000

8 1,110,000

A. accept the project.

B. be indifferent to the project.

C. reject the project.