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Please answer the following questions: 1. You are looking at a new project and you have estimated the following cash flows: Year 0: CF =

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Please answer the following questions: 1. You are looking at a new project and you have estimated the following cash flows: Year 0: CF = -45,000 Year 1: CF = 10,000 Year 3: CF = 20,000 Year 5: CF = 30,000 Your required rate of return is 10% per year compounded annually. The target payback period is 4 years. Part I: What is the NPV of this project and do we accept or reject the project? Part II: What is the IRR of this project and do we accept or reject the project? Part III: What is the payback period of this project and do we accept or reject the project? (50 points) Show your calculation to get full points. Check your answer: NPV = -2.255.16 and IRR - 8.38% Answer: Part 1: Part II: Part

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