A service company is evaluating a new service line with the following cash flows:

• Initial investment: $2,500,000
• Year 1: $700,000
• Year 2: $900,000
• Year 3: $1,100,000
• Year 4: $1,300,000

The discount rate is 7%.

• Calculate the NPV.
• Determine the IRR.
• Calculate the MIRR.
• Should the project be undertaken if the minimum acceptable IRR is 8%?

Compute the discounted payback period.