A company is considering a project that would have a ten-year life and would require a $1,000,000 investment in equipment. At the end of ten years, the project would end and the equipment would have no salvage value. The project would provide net operating income (in cash) of 300,000 per year. The required rate of return is 12%. In a numbered list, respond to the following:

1. What is the project's net present value?

2. What is the project's internal rate of return to the nearest whole percent?

3. What is the project's payback period?

4. Based on the information above, should the company make this investment?

Why or why not?