A company is considering a new inventory system that will cost $120,000. The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year 1, $55,000 in year 2, $65,000 in year 3, and $40,000 in year 4. The firms required rate of return is 9%. What is the payback period of this project?

1.95 years

2.46 years

2.99 years

3.10 years

--------- What is the net present value (NPV) of the project?

		$28,830.29
		$30,929.26
		$36,931.43
		$39,905.28

--------what is the internal rate of return (IRR) of this project?

		14.03%
		17.56%
		19.26%
		21.78%

--------what is the profitability index (PI) of this project?

		0.87
		1.11
		1.31
		1.83.

-------& should the company accept the project?

		Yes
		No