You are asked to evaluate a project for your company. The initial investment of the project is $250 million. The project can generate $40 million, $80 million, $120 million, and $90 million in each of the following four years. The appropriate discount rate for the project is 12% per year. Should the company accept the project?

Possible Answers:

Yes, because the project can generate $80 million more cash than the initial investment.

Yes, because the project can generate cash fast enough to recoup the initial investment.

No, because the project does not generate large enough cash flows in the first couple of years.

Yes, because the project has a negative NPV of -7.90 million.

No, because the project has a negative NPV of -7.90 million.