A project that costs $2,000 to install will provide annual cash flows of $550 for the next 5 years. The firm accepts projects with payback periods of less than 3 years.

a. What is this project's payback period? (Round your answer to 3 decimal places.)

b. Will the project be accepted?

c-1. What is project NPV if the discount rate is 2%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

c-2. Should this project be pursued?

d-1. What is project NPV if the discount rate is 12%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

d-2. Should this project be pursued?

e. Will the firms decision change as the discount rate changes?