Zak and Archie are both considering investing in a project with the following cash flows. Zak is content earning a 9 percent return, but Archie desires a return of 16 percent. Who, if either, should accept this project?

Both Zak and Archie

Zak, but not Archie

Archie, but not Zak

Neither Zak nor Archie

Zak, and possibly Archie, who will be neutral on this decision as his net present value will equal zero

Cash Flow $ (25,000) 1 13,700 2 18,400 Year