Open Windows Corp

Open Windows Corp. has the following investment goals: payback (PB) of five years, accounting rate of return (ARR) of 15%, hurdle rate of 20%. Analysis of the Great Bear Oil plant expansion shows the following results: PB is 4.5 years, ARR is 14%, IRR is 21% and NPV is ($12,500) . What should Open Windows do?

A) Proceed with the expansion because the PB period is less than the goal.
B) Proceed with the expansion because the ARR is less than the goal.
C) Wait until the price of oil rises and the calculations improve.
D) Reject the expansion because the the NPV is less than zero.
E) Reject the expansion because the IRR is higher than the goal.