Youve just been hired as a financial analyst for Ford Motors. Tim Stone. CFO, has asked you to analyze the project data shown to the right. Furthermore, Fords required return for this project is 9%, its tax rate is 22%, and its payback requirement in order to do a project is less than 3 years. In his memo to you, he asked you to answer the following questions:

1. What is the payback period for this project using the numbers below? Cashflows over years 0-3. Year Cashflow 0 $(37,500) 1 $16,750 2 $29,850 3 $7,850

2. What is the IRR of this project using the numbers below? Cashflows over years 0-3. Year Cashflow 0 $(39,500) 1 $16,640 2 $29,740 3 $7,740

3. What is the NPV of this project using the numbers below? Cashflows over years 0-3. Year Cashflow 0 $(39,500) 1 $16,640 2 $29,740 3 $7,740

4. All numbers were relatively close enough to each other that the "go vs no-go" decision would be the same. Should Ford do this project and why or why not?

A. Yes, PRIMARILY because IRR is greater than the required rate of return

B. Yes, PRIMARILY because the payback period is less than the required term.

C. Yes, PRIMARILY because NPV is positive

D. No, PRIMARILY because the NPV is negative

E. No, PRIMARILY because the IRR is less than the required rate of return.