2. Project L has a cost of 540 300, and its expected net cash inflows are $9,000 per year for 8 years. 90008 72.000 a. What is the project's payback period? 40,000/72,000 40,000 fa,ooo = 4,441 P=.56. b. The cost of capital is 12%. What are the project's NPV and 20 1+12 100 x 12 c. What is the project's IRR? 3. A factory costs $550,000. You forecast that it will produce cash inflows of $100,000 in Year 1, $200,000 in Year 2, and $300,000 in Year 3. The cost of capital is 12% What is the NPV of the factory? Should accept or reject the project 50,000 4. You are presented a proposal for a project. Project Iron costs $5,000 and will bring in $25,000 in the first year. The next year you will have to pay out $20,000. With a 10% cost of capital, calculate the NPV for the project. Do you accept the project? NIVE$ 1198 5. Rollins Supplies Company is considering an expansion project. The cash flows are shown in the following table. The cost of capital is 20%