My company is about to engage on a project that provides annual cash flows of $180,000 for 10 years costs $860,000 today.

(a) What is the Payback Period for this project?

(b) What is the NPV for the project if the required return is 9%?

(c) At a required return of 9%, should the firm accept this project?

(d) What is the NPV for the project if the required return is 21%?

(e) At a required return of 21%, should the firm accept this project?

(f) At what discount rate would you be indifferent between accepting the project and rejecting it?