Consider the following potential investment, which has the same risk as the firms other projects:

Time	Cash Flow
0	-$750,000
1	$250,000
2	$260,000
3	$270,000
4	$280,000
5	$290,000

The firms current weighted-average cost of capital is 12%.

a. How long will it take to recover the initial outflow?

b. How much value will this investment create for the firm?

c. At what discount rate will this project break even?

d. Should the firm do this investment? Be sure to justify your recommendation.

e. How would your analysis change if this potential investment was more risky than the firms other projects? Be specific.

Please show calculations