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Considering the following cash flows: Year 0: CF = -29,800 Year 1: CF = 13,900 Year 2: CF = 15,000 Year 3: CF = 11,400

Considering the following cash flows:

Year 0: CF = -29,800

Year 1: CF = 13,900

Year 2: CF = 15,000

Year 3: CF = 11,400

The required return for assets of this risk level is 12%.

(1)What is the NPV? Should we adopt this new project based on NPV?

(2)What is the IRR? Should we adopt this new project based on IRR?

(3)What is the profitability index (PI)? Should we adopt this new project based on PI?

(4)What is the payback period for this project?

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