Lloyd Enterprises has a project which has the following cash flows:

Year Cash Flow

0 -$200,000

1 50,000

2 75,000

3 100,000

4 40,000

5 25,000

The cost of capital is 10%.

a. Compute the Payback Period

b. Compute the Net Present Value for this project.

c.Compute the Internal Rate of Return for this project

e. If the Required Rate of Return was 15%, would you make this investment? Why, or why not?