Instructions: Please answer questions A-D below. I can't award credit if A-D isn't answered completely.

Primus Corp. is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45 percent. The cost of this project will be $7,125,000. It will result in additional cash flows of $1,875,000 for the next eight years. The company uses a discount rate of 12 percent.

A. What is the payback period?

B. What is the NPV for this project ?

C. What is the IRR?

D. Based on the results give a suggestion to Primas Corp?