Belgravia Petroleum Inc. is trying to evaluate a generation project with the following cash flows:

YearCashflow0-$300,000,0001$63,000,0002$85,000,0003-$50,000,0004$154,000,0005$157,000,0006-$50,000,0007$70,000,0008$72,000,000

• Construct a spreadsheet and calculate the following (the required rate of return is 7%):
  • Payback period
  • Discounted payback period
  • Net present value (NPV)
  • Modified IRR
    • The discounting approach
    • The reinvestment approach
    • The combination approach

• Based on your analysis, should the company take the project? Why?