The following information is given for project A with an initial investment of R50 000.

Present value of cashflow

Discounted @10% p .a

Year Net cash flow.

1 R11 000. R 10 000.00

2 R14 500. R11 983.47

3 R16 000. R12 021.04

4 R17 000. R11 611.23

5 R17 700. R10 990.31

Which one of the following statements is correct?

(a)The internal rate of return (IRR) for project A is smaller than 10%

(b)The net present value (NPV) for project A is negative

(c)The discounted payback period for project A is 3 years

(d)The payback period for project A is 3.5 years

(e)None of the above