Energy Project Beta Has the Following Cash Flows:CF 0 -$4,000CF

Multiple Choice

Energy Project Beta has the following cash flows:CF 0 -$4,000CF 1 $0CF 2 $0CF 3 $1,000CF 4 $3,000CF 5 $7,000If this project has a required rate of return of 10%,will management accept or reject the project?NPV @ r =10% = $3,147 (rounded up)

A) Management would reject the project because there are no cash flows greater than zero in years 1 and 2.
B) Management would reject the project because the project has a NPV of $8,000.
C) Management would reject the project because the project has a NPV of $3,147.
D) Management would reject the project because the project has a NPV of $5,067.