Assume the interest rate is 9 %. 

Question 1: Find the NPV of the project. Show the formulas. Should you accept the project?

Question 2: Find the IRR of the project. Show the formulas . Should you accept the project?

Question 3: Find the PI of the project. Show the formulas . How can you interpret the answer? Should you accept the project? 

Question 4: Find the exact discounted payback period (hint: first, express all CF in terms of Year 0 CF, then use the exact payback period formula (A+B/C) like we did in class ) . Show your work. Should you accept the project if the preset limit is 4 years

Year Cash Flow

0   $-75,000 

1  15,000 

2 12,000

 3 45,000 

4 12,00