A project has the following cash flows

Period Cash Flow

0 (250,000)

1 62,500

2 112,500

3 87,500

4 87,000

5 62,500

a) Calculate the payback period for the project.

b) If the company requires a payback period of 3.5 years, should the project be accepted or rejected?

c) Calculate the NPV of the project if the discount rate is 9%.

d) What can you say about the IRR of the project? No calculations required.