please explain

Page 1 Previous Page Next Page Page 7 of 18 Page 2 Question 7 (Mandatory) (1 point) Saved An investment costs $800 initially, then earns $300 in years 2.3, and 4. The annual interest rate is 4%. Which of the following statements about this investment is correct? Page 3 The investment should be made, since its payback period is three years. . The investment should be made, since the total amount earned is greater than the cost Page 4 The investment should not be made because its net present value is negative. The investment would become more attractive if the interest rate increased