Goldman Sachs Group is considering a project with an initial investment of $550,000. The asset will be depreciated over five years at 20% per year. The expected cash flows are:

Year	Inflow ($)	Outflow ($)
Year 1	160,000	65,000
Year 2	170,000	70,000
Year 3	180,000	75,000
Year 4	190,000	80,000
Year 5	200,000	85,000

a. What is the payback period?
 b. Calculate the internal rate of return (IRR).
 c. Assuming a cost of capital of 10%, what is the net present value (NPV) of the cash flows?
 d. Should Goldman Sachs proceed with the project?