The information below describes a project with an initial cash outlay of $10,000 and a required return of 12%.
After-tax cash inflow
Year 1 $6,000
Year 2 $2,000
Year 3 $2,000
Year 4 $2,000
Which of the following statements is correct?
A) The project should be accepted since its NPV is $353.87.
B) The project should be rejected since its NPV is -$353.87.
C) The project should be accepted since it has a payback of less than four years.
D) The project should be rejected since its NPV is -$23.91.