Cambrian Corporation is considering a project that will require a cost outlay of $30,000 per year for 4 years. The project is estimated to yield revenues of $60,000 in Year 4, $40,000 in Year 5 and $30,000 for each of the following five years.

If the company requires a minimum rate of return of 14% on all new projects.

a) Prepare a fully documented timeline of all cash flows (5 marks)

b) Calculate the NPV of the project. (10 marks)

c) Calculate the ROI of the project. (5 marks)

d) Determine the payback period of the project (5 marks)

e) Would you go ahead with the project? Why/why not? (5 marks)