Telesis Corp is considering a project that has the following cash flows:

Year	Cash Flow
0	-$1,000
1	400
2	300
3	500
4	400

The companys weighted average cost of capital (WACC) is 10%. What are the projects payback period (Payback), internal rate of return (IRR), net present value (NPV), and profitability index (PI)?

• A.

  Payback = 3.5, IRR = 10.22%, NPV = $1260, PI=1.26

• B.

  Payback = 2.6, IRR = 21.22%, NPV = $349, PI=1.35

• C.

  Payback = 2.6, IRR = 21.22%, NPV = $289, PI=1.29

• D.

  Payback = 3.6, IRR = 20.22%, NPV = $318, PI=1.32

• E.

  Payback = 2.6, IRR = 21.22%, NPV = $260, PI=1.26