FM Is Contemplating an Average-Risk Investment Costing $100 Million and Promising

Multiple Choice

FM is contemplating an average-risk investment costing $100 million and promising an annual after-tax cash flow of $15 million in perpetuity.Which of the following statements is/are correct?
I.FM should reject the project because the IRR is greater than the firm's WACC.
II.FM should accept the project because the IRR is greater than the firm's WACC.
III.FM should accept the project because the NPV is greater than zero.
IV.FM should reject the project because the NPV is less than zero.

A) I only
B) II only
C) IV only
D) I and IV only
E) II and III only
F) None of the above.