You are evaluating a project with initial investment (at year 0) of $190,000 that is expected to have annual net profits of $21,000 at the end of each of the next 13 years, starting in year 1. Your firms cost of capital is 9.00% and their preferred payback period is 7 years or less. Will your firm accept or reject the project if they follow the payback rule?

Group of answer choices

Not enough information.

The payback rule cannot be applied in this case.

Reject.

Accept.