Bayer AG is evaluating a project requiring an initial investment of $950,000. The asset will be depreciated over five years at 20% per year. The expected cash flows are:

Year	Inflow ($)	Outflow ($)
Year 1	250,000	105,000
Year 2	260,000	110,000
Year 3	270,000	115,000
Year 4	280,000	120,000
Year 5	290,000	125,000

a. What is the payback period?
 b. Calculate the internal rate of return (IRR).
 c. Assuming a cost of capital of 10%, what is the net present value (NPV) of the cash flows?
 d. Should Bayer AG proceed with the project?