Question: San Dimas Security Inc. is considering a project that has the following cash flow and projects WACC data. Do they have to accept it or

San Dimas Security Inc. is considering a project that has the following cash flow and projects WACC data. Do they have to accept it or reject it and why?

Projects WACC: 19%

Year 0 1 2 3

Cashflows -$1000 $700 $500 $500

A.

Accept since NPV is $150.25

B.

Accept since NPV is $238.03

C.

Accept since IRR is 12%

D.

Accept since IRR is 15%

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