PLEASE SOLVE IT!

Consider a potential investment project that has an initial cash outlay of -$1,500 now, and free cash flows of $700, $1,000 and $1,300 over the next three years. Assume an appropriate discount rate is 10%.

(a) Calculate the discounted payback period (PBP) for this project. (3 marks)

(b) Calculate the net present value (NPV) of this project. (3 marks)

(c) Say the required payback period is 3 years. Using your answers for Parts (a) and (b), should the project be accepted or rejected? Briefly explain why. (2 marks)

(Include enough working to show you understand the calculations.)