Paladin Ltd requires 11% pa required rate of return and has a required payback period of 2 years. Paladin is considering a new project that will cost $60,000 and provide the following expected after tax cash flows. (Cash flows occur at the end of each year.) End of Year Cash flow of Project ($) 1 20,000 2 30,000 3 15,000 4 12,000

a. Calculate the Net Present Value (NPV) of the Project. (Show answer correct to the nearer cent.) b. Calculate the Present Value Index or benefit/cost ratio of the Project. (Show answer correct to four decimal places.) c. Recommend under each criterion and overall if Paladin should accept the project or not.