Cash Flow Intuition A project has an initial cost of I, has a required return of R, and pays C annually for N years.

a. Find C in terms of I and N such that the project has a payback period just equal to its life.

b. Find C in terms of I, N, and R such that this is a profi table project according to the NPV decision rule.

c. Find C in terms of I, N, and R such that the project has a benefi t–cost ratio of 2. LO.1