Citigroup Inc. is considering a project that requires an initial investment of $600,000. The asset will be depreciated over five years at 20% per year. The cash flows are expected to be:

Year	Inflow ($)	Outflow ($)
Year 1	200,000	80,000
Year 2	210,000	85,000
Year 3	220,000	90,000
Year 4	230,000	95,000
Year 5	240,000	100,000

a. What is the payback period?
 b. Calculate the internal rate of return (IRR).
 c. Assuming a cost of capital of 9%, what is the net present value (NPV) of the cash flows?
 d. Should Citigroup Inc. proceed with the project?