A project requires an initial investment of $250,000 and is…

A project requires an initial investment of $250,000 and is expected to generate the following cash inflows:   Year Cash Flow ($) 1 90,000 2 100,000 3 120,000 4 150,000   The firm’s cost of capital (discount rate) is 10%. After calculating NPV, the CFO notes that if the rate increased to 12%, the NPV would turn negative. Based on this, which of the following statements is most accurate?