Aviation Cargo Ltd

Aviation Cargo Ltd. (ACL) wants to spend $5 million to expand a runway at its air field to accommodate a new larger cargo jet. It estimates additional cash inflows of $1 million for the next ten years. What should ACL do?

A) Accept the project because the payback period is six years.
B) Accept the project because the ARR is 20%.
C) Accept the project because the IRR is 15%.
D) Accept the project because the NPV is $1, 710,000.
E) Accept the project because the the profits will increase.