A three$-$year investment project has a two$-$year payback period. Which of the following can be

deduced?

$($A$)$ The project$$s NPV must be positive.

$($B$)$ The project$$s IRR must be greater than its rate of return $($r$).$

$($C$)$ Both $($A$)$ and $($B$)$ can be deduced.

$($D$)$ Neither $($A$)$ nor $($B$)$ can be deduced.