Spring Company Has Invested £20,000 in a Project

Multiple Choice

Spring Company has invested £20,000 in a project. Spring's discount rate is 12% and the profitability index on the project is 1.00. Which of the following statements would be true
I. The present value of the project's net cash flows is £20,000.
II. The project's internal rate of return is equal to 12%.

A) Only I.
B) Only II.
C) Both I and II.
D) Neither I nor II.