a firm is considering investing in a project with the following cash flows:

Year 1 2 3 4 5 6 7 8

Net cash $2,000 $3,000 $4,000 $3,500 $3,000 $2,000 $1,000 $1,000

flows

the project requires an initial investment of $12,500, and the firm has a required rate of return of 10 percent. Compute

a) the payback

b)discounted payback and

c) net present value and determine whether the project should be accepted.