You Are Analyzing a Project and Have Prepared the Following

Multiple Choice

You are analyzing a project and have prepared the following data:
$\begin{array} { | l | l | } \hline \text { Year } & \text { Cash Flow } \\\hline 0 & - £ 169,000 \\\hline 1 & £ 46,200 \\\hline 2 & £ 87,300 \\\hline 3 & £ 41,000 \\\hline 4 & £ 39,000 \\\hline\end{array}$
Required payback period: 2.5 years Required AAR: 7.25% Required return: 8.50%
Based on the net present value of _____for this project, you should _____ the project.

A) -£2,021.28; reject
B) -£406.19; reject
C) £7,978.72; accept
D) £9,836.74; accept
E) £12,684.23; accept