The risk-free rate of return is 9% and the market risk premium is 5%. The beta of the project under analysis is 1.4, with expected net cash flows…

26.The risk-free rate of return is 9% and the market risk premium is 5%. The beta of the project under analysis is 1.4, with expected net cash flows estimated to be $500 per year for 5 years. The required investment outlay on the project is $5000. Should the project be accepted?

A- NPV = 3362.85, accept B- NPV = -3362.85, reject C- NPV = 2633.85, reject D- NPV = 3400, accept