4. Glax Limited is considering embarking on a bottling water project with the following cash flows. The opportunity cost of capital of the project is 10 %.

(a) Assuming the payback period of Glax Limited is three years. Should the project be accepted based on the payback rule?

(b) If the discounted payback period of Glax Limited is 3.5 years, should the project be accepted based on the discounted payback period rule?

(c) Based on the NPV rule, should the project be accepted?

(d) Based on the IRR rule, should the project be accepted?

(e) Based on the Modified IRR rule, should the project be accepted?

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Year Cash flows 0 -300,000 11234 150,000 120,000 90,000 30,000