Q3 A company is considering investing in a project with initial investment of $225,000 and is expected to generate the following net cash inflows: Year Cash flow [$] 1 95,000 2 80,000 3 60,000 55,000 4 The company required rate of return is 12%. Required: a) Compute net present value of the project. [2 marks] b) Compute the payback period of the project [2 marks] c) If the management cut off period for payback period is 3 years would you accept the project under the payback period criteria? Would you accept it under the NPV criteria? [2 marks] Page 6 of 7