A Project Has a Net Present Value of $1,200 and a Project

Multiple Choice

A project has a net present value of $1,200 and a project life of four years.Which one of these statements must be true?

A) The project's IRR is less than the required rate of return.
B) The project is expected to return $1,200 in Time 0 dollars over and above the discount rate.
C) The project would also have a positive net present value if Year 4 was omitted.
D) The project's cash inflows exceed its outflows by $1,200 over the four years.
E) The project is expected to return $1,200 in Year 4 dollars over and above the initial investment.