1. Consider an investment that costs $130,000 and has cash inflows of $26,000, $29,000, and $34,000, $45,000 for the next four years, respectively. The required return is 9%, and required payback is 3 years. (type all steps clearly when solving)

A. What is the payback period? Using the decision rule, should we accept the project?

B. What is the profitability index? Using the decision rule, should we accept the project?

C. What is the IRR? Using the decision rule, should we accept the project?

D. Assuming that the cash flows are the projects projected net incomes for the next 4 years, what is the average accounting return? Using the decision rule, should we accept the project using the required rate of return as the deciding factor?

E. What is the projects NPV? Using the decision rule, should we accept the project?