You are considering an investment with the following cash flows:

Year 0: -$145,000

Year 1: $200,000

Year 2: $250,000

Year 3: -$300,000

The firms hurdle rate is 10%. Should we accept or reject this project and why?

• No, IRR is less than the 10% hurdle rate
• Yes, the NPV Is positive at a 10% discount rate
• No, the NPV is negative
• Yes, the IRR is less than the 10% hurdle rate