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Cost: $10,000 Annual cash inflow: $2,000 Life: 6 years Cost of capital: 13% Given the information...

Cost: $10,000

Annual cash inflow: $2,000

Life: 6 years

Cost of capital: 13%

Given the information above, which of the following statements is the least accurate and why?

a. The NPV is -$2004.90; reject the project

b. The IRR is 5.47%; reject the project

c. Payback period is 5 years

d. Discounted payback period is 4.5 years

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