Your firm is considering an investment in Project A. The firm evaluates their projects using a discount rate of 12% APR compounded annually, and they expect project A to produce the following relevant cash flows:

Year Project A

0 -$200,000

1 $120,000

2 $62,500

3 $42,900

The payback period of the project is:

A-2 years

B-2.41 years

C-2.59 years

D- 3 years

The IRR of the project is:

A-7.58%

B-8.34%

C-12%

D-14.3%

The NPV of the project is:

A-$21,718

B-$20,995

C-$24,952

D- -$12,497

Based soley on the above information, the project should be:

A-Accepted

B-Rejected