Sonny and James are both considering the same project with the cash flows shown below. Sonny is content earning 8 percent on the project but James wants to earn at least 12 percent. Who, if either, should accept this project?

Year 0 1 2 3

Cash flow -$67,000 $18,000 $24,000 $42,000

a. Sonny, but not James

b. James, but not Sonny

c. Sonny, James can go either accept or reject as his NPV is zero

d. neither Sonny nor James

e. both Sonny and James