#Precisy the formulas you will use (DO NOT USE EXCEL)

Problem 4 (8 points) Your family business has chosen to invest in a project that should generate cash flows of $132,000 per year for 5 years. The initial investment cost is 520000S. a) Should we accept this project if the required payback period is 4 years. (2 points) b) Should we accept this project if the required updated payback period is 4 years knowing that the discount rate is 4%. (2 points) c) Should we accept this project if the minimum rate of return required is 10%. (2 points) d) Suppose that each year the expected annual net benefits of this project constitute 25% annual cash flows generated by it. Calculate the book rate of return of this project considering a linear amortization of the cost of the project. (2 points)