(Chapter 7) You want to start a new shoe company. This project will cost $500,000 to start. In year one you expect to earn a net cash flow of $300,000. In year two you expect to earn $400,000. In year 3 you expect to sell your company for $500,000 (no other cash flows in year 3). If your cost of capital is 10%, what is the NPV of this project? According to NPV should you undertake this project? What is the IRR? According to IRR should you undertake this project? What is the payback period? If you subjectively decide that you need to earn your initial investment back in 2 years or less, should you accept this project according to the payback period