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Mega Movies Inc. is considering investing in a movie project. The expected cash flows of the project are given in the table below. Year 0

Mega Movies Inc. is considering investing in a movie project. The expected cash flows of the project are given in the table below. Year 0 1 2 3 4 Cash Flow -$120,000 $65,000 $45,000 $25,000 $15,000 The required return of the project is 12 percent. a. What is the NPV of this project? (4 marks) b. What is the discounted payback period of this project? (4 marks) c. Should the firm accept this project? Explain why or why not (4 marks).

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