Suppose Your Firm Is Considering Investing in a Project with the Cash

Multiple Choice

Suppose your firm is considering investing in a project with the cash flows shown as follows,that the required rate of return on projects of this risk class is 8 percent,and that the maximum allowable payback and discounted payback statistic for the project are three and three and a half years,respectively.
Use the NPV decision rule to evaluate this project; should it be accepted or rejected?

A) $35,995.86, reject
B) $38,875.53, accept
C) $138,875.53, accept
D) $238,875.53, accept