Union Atlantic Corporation, which has a required rate of return equal to 16 percent, is evaluating a capital budgeting project. The initial cash outflow is $170,000 and cash inflow at the year-end of each of the following four years is $60,750. According to this information, which of the following statements is correct? O The project's discounted payback period should be compared with the traditional payback period to make the correct decision. O The project is not acceptable as the net present value of the project is negative. O The project's discounted payback period must be greater than its economic life. The project is acceptable as the present value of the project is positive. 5 - 14 C 2 @ www