Sorenson Motors (SM) is considering a project that has the following cash flows: Year Cash Flow 0 Initial Outlay 1 $2,000 2 3,000 3 3,000 4 1,500 The project has a payback period of 2.5 years. The weighted average cost of capital is 12%. Which of the following statements is NOT correct?

	a. Acceptance of this project would increase SMs value by $7,265.91.
	b. The project is expected to generate $1.12 for each $1.00 of investment.
	c. If SM were to accept this project, its shareholders wealth would increase by $765.91.
	d. The project is generating more cash than is needed to service its debt, and this excess cash accrues solely to SMs stockholders