A project that costs $2,600 to install will provide annual cash flows of $610 for the next 6 years. The firm accepts projects with payback periods of less than 4 years.

a-1.	What is the payback period of the project? (Round your answer to 2 decimal places.)

Payback period

years

a-2.

Will the project be accepted?

	Yes
	No

b-1.	What is project NPV if the discount rate is 4%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

NPV

$

b-2.

Should this project be pursued?

	No
	Yes

c-1.	What is project NPV if the discount rate is 9%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

NPV

$

c-2.

Should this project be pursued?

	No
	Yes

d.

Will the firms decision change as the discount rate changes?

	Yes
	No