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5. Suppose that Microsoft is considering sponsoring a pavilion at the upcoming World's Fair. The pavilion would cost $800,000, and it is expected to result

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5. Suppose that Microsoft is considering sponsoring a pavilion at the upcoming World's Fair. The pavilion would cost $800,000, and it is expected to result in $5 million of incremental cash inflows during its 1 year of operation and $0.5 million in each of the next 2 years. However, in the second year, it would take $5 million of costs to demolish the site and return it to its original condition. Thus, the project's expected net cash flows look like this (in millions of dollars): Year Net Cash Flow O ($0.8) 15.0 (4.5) > Evaluate this project using payback as well as the best possible evaluation method. The required return is 12%. What do you recommend? Why

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