A project has an initial cost of $50,000. The incremental inflows associated with the project are $20,000 in year one, $15,000 in years two and three, and $10,000 in year four. All cash inflows are at the end of the year. 11%.

1.What is the project's payback?

A) 2.5 years

B) 3.0 years

C) 3.5 years

D) 4.0 years

2.What is the project's NPV?

A) -$2,252

B) $2,252

C) $1,000

D) $1,252

3.What is the project's IRR?

A) 3.68%

B) 6.83%

C) 8.64%

D) 11.00%

4.What is the project's MIRR?

A) 8.63%

B) 9.73%

C) 11.00%

D) 14.43%

5.Should the company accept the project?

A) Yes

B) No

C) There's a conflict here between IRR and NPV so we don't know

D) Only if it is independent of other projects