25. Cassidy and Sons is reviewing a project with an initial cash outflow of $250,000.

An additional $100,000 will have to be invested after the first year, followed by an additional investment of $50,000 at the end of the second year. Beginning at the end of year 3, the project is expected to generate cash flows of $90,000 per year for the next eight years.

a. Calculate the project’s payback period, IRR, and its NPV and PI at a cost of capital of 8%.

b. What concerns might Cassidy have regarding this project beyond the financial calculations from part (a)?