Alpha Manufacturing Inc. is considering whether to invest in a new project. The project involves setting up a manufacturing facility to produce a new product line. The initial investment required for the project is $1,000,000. The project is expected to generate cash flows for the next five years as follows: Year 1: $300,000 Year 2: $400,000 Year 3: $500,000 Year 4: $400,000 Year 5: $300,000 Alpha Manufacturing Inc. decides to use a discount rate of 10% to account for the time value of money and the risk associated with the project. What is the payback period? 1.87 years 2 years 2.6 years 3.2 years Refer to Scenario 1 What is the NPV of the project? Should the company accept the project? -$245,369.25; no because NPV is negative -$245,369.25; yes because NPV is negative $438,444.96; no because NPV is positive $438,444.96; yes because NPV is positive Refer to Scenario 1 What is the internal rate of return (IRR)? Should the company accept the project? 25.67%; yes because the IRR is greater than the cost of capital. 25.67%; no because the IRR is greater than the cost of capital. 14.69%; yes because the IRR is greater than the cost of capital. 14.69%; no because the IRR is greater than the cost of capital.