project that costs $1,800 to install will provide annual cash flows of $530 for the next 5 years. The firm accepts projects with payback periods of less than 4 years.

a-1. What is the payback period of the project? (Round your answer to 2 decimal places.)

Payback period years

a-2.

Will the project be accepted?

No

Yes

b-1.	What is project NPV if the discount rate is 4%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

NPV

$

b-2.

Should this project be pursued?

Yes

No

c-1.	What is project NPV if the discount rate is 11%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

NPV

$