An investor is considering investing in a capital project. The project requires an outlay of $ $100,000$ at outset and further payments $ $50,000$ per annum at the end of each year for next $3$ years.

The project is expected to provide the year end annual income starting at a rate of $$10,200$ from first year for next $25$ years. Each annual income rise by $8\mathrm{.}00\%$ per annum. Rate of interest is $8\mathrm{.}00\%$ convertible by monthly.

$($a$)$ Can the project be accepted using NPV criteria? Justify your answer.

$($b$)$ Without doing any calculation, providing valid justification$/$s$,$ comment about IRR, PI and Discounted Payback Period of the project.

$($c$)$ Financial Consultant says, if the IRR of the project is greater than $7\mathrm{.}30\%,$ project can be accepted. Do you agree with this? Justify your answer.

$($d$)$ If each annual income rise by $8\mathrm{.}30\%,$ do you change your decision in part b$)?$ Justify your answer.