Consider the previous question with the following updated details: A company is considering a project that will last for 4 years with no residual value. The project has the following cash flows and details: Period 0: Cash flow = -$165,000 (Cost of project) Period 1: Cash flow = $85,000, Net Income = $47,500 Period 2: Cash flow = $66,000, Net Income = $28,500 Period 3: Cash flow = $50,000, Net Income = $12,500 Period 4: Cash flow = $50,000, Net Income = $12,500 Average Book Value = $82,500 The required annual return on projects of this risk is 12%. The company is trying to determine whether or not to accept this project. They use the discounted pay back period method of evaluation and their decision rule is that they need to be paid back, on a discounted basis, within 3 years. True or False: Based on their evaluation method and decision rule, they SHOULD accept this project.

True

False