Problem: A project has annual cash flows (including the initial year) of -160,000, 70,000, 55,000, 70,000, 60,000, and 45,000, and a discount rate of 11%. The company should:
a. Accept the project because it will increase shareholder wealth.
b. Reject the project because it will reduce shareholder wealth.
c. Reject the project because the payback period is too long.
d. Accept the project because the payback period sufficiently short.