Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the project are three and three and a half years, respectively.

Time 0 1 2. 3 4. 5

Cash Flow 200 60 90 110 60 20

Use the NPV decision rule to evaluate this project; should it be accepted or rejected?

Group of answer choices

$98, accept

$72, reject

$278, accept

$78, accept