Norris Inc. calculated the net present value for a potential investment project, which is estimated to yield a negative amount of ($1,000). Which of the following conclusions is correct?

1.The accounting rate of return is less than the hurdle rate.

2.The internal rate of return is likely adequate.

3.The present value of the net cash inflows is greater than the present value of the net cash outflows.

4.The discounted payback period exceeds the investment's useful life.