Based Upon the Following Cash Flows, Should Ooey Gooey Candy

Multiple Choice

Based upon the following cash flows, should Ooey Gooey Candy Makers introduce a new product, Skinny Minnie Diet Cuisine? The initial investment is $780,000, and the cost of capital is 12.2%. ? $$\begin{array} { | l | l | } \hline \text { Years } & \text { Cash Flows } \\\hline 1 & \$ 90,000 \\\hline 2 & \$ 105,000 \\\hline 3 & \$ 105,000 \\\hline 4 & \$ 195,000 \\\hline 5 & \$ 195,000 \\\hline 6 & \$ 195,000 \\\hline\end{array}$$

A) Yes, the NPV is $288,410.60 and the IRR is 38.2%.
B) Yes, the NPV is $175,478.98 and the IRR is 20.42%.
C) No, the NPV is -$211,589.40 and the IRR is 3.24%.
D) No, the NPV is -$75,375.18 and the IRR is 11.75%.