Management of Blossom, Inc., is considering switching to a new production technology. The cost of the required equipment will be $4,000,000. The discount rate is 11 percent. The cash flows that the firm expects the new technology to generate are as follows. Years 1-2 3-5 6-9 CF 0

Management of Blossom, Inc, is considering switching to a new production technoloby. The cost of the required equipment will be sa,000,000. The discount rate is 11 percent. The canh flows that the firm expects the new technology to generate are as follows. a. Congute the payback and discounted payback periods for the project (Round answer fo 2 decimal ploces, 2 . 15.25.) The payback for the project is years, and the discounted payback period is b. What is the NPV for the aroject? Should the firm go ahead with the project? iEnter neqative amounti laing ngabtive sign eg 45.25 Do not round docount foctors. found intermediabe calculations to 0 decimal ploces es 1,52.5 and final answer to 2 decimal elloes, es. 15.25 ) The NPV of the propect is 3 and using the NPV rule the project should be