Gorgas is also considering Project Naxos, which has the following estimated cash flows:

Year:	0	1	2	3	4
Cash Flow:	-1,500	238	349	466	1,673

Again, the firms weighted average cost of capital is 12%.

5. Calculate Project Naxos Net Present Value. (3 points)

6. Calculate Project Naxos Internal Rate of Return. (3 points)

7. Calculate Project Naxos Payback Period. (2 points)

8. Calculate Project Naxos Profitability Index. (2 points)

9. If Project Mykonos and Project Naxos are mutually exclusive, which one should Gorgas Co. pursue? Explain why. (3 points)