You are considering investing in a start up project at a cost of $100,000. You expect the project to return $500,000 to you in seven years. Given the risk of this project, your cost of capital is 20%. The project NPV is $39,500 and the IRR is 25.85%

1) The decision you should take regarding this project is

A) reject the project since the NPV is negative.

B) reject the project since the NPV is positive.

C) accept the project since the IRR < 20%.

D) accept the project since the IRR > 20%.