Question: Southem Oregon Business (SOB) - a startup company operating in the Rouge Valley - is currently looking to invest in Project A with the estimated cash flows as follows: Initial Investment at start of project =$3,600,000 Cash Flow at end of year 1=$500,000 Cash Flow at end of years 2 through 6=$625,000 each year Cash Flow at end of years 7 through 9=$530,000 each year Cash Flow at end of year 10=$385,000 SOB financial manager would like to evaluate Project A through various capital budgeting models to ensure that this project is worth investment Please answer the following questions: 1. SOB wants to know the payback period of this project. Suppose the cutoff period is 6 years. Based on the decision rule for the payback period, determine whether SOB should accept or reject this project. Show your work and provide reasons for your answer 2. Suppose the appropriate discount rate is 14% and SOB wants to know this project's net present value (NPV) Based on the NPV decision nule, determine whether SOB should accept or reject this project Show your work and provide reasons for your answer 3. Suppose the approprate hurdle rate is 14% and SOB wants to know this project s internal rate of retum (IRR) Based on the IRR decision rulle detemine whether SOB should accept or reject this project Show your work and provide reasons for vour ansiver. 4. Based on your answers in questions 13, do you find the pay back period, NPV, and IRR yield the same result regarding whether or not it is wionth investing in Project AP If there is an inconsistency, which method would you recommend to the financial manager at SOB? Provide your reasons, and discuss some of the strengths and shoitcomings of vour recommended method. 5. Suppose the SOB financial manager is also considering an alternative investment namely project B, whose NPV is $80,350. Assume that Project A and B are mutually exclusive (i.e, the companies must choose a single project due to its limited resources for investing in multiple projects simultaneousty). Would you recommend the SOB to invest in Project A or B? Provide reasons for your answer. Question: Southem Oregon Business (SOB) - a startup company operating in the Rouge Valley - is currently looking to invest in Project A with the estimated cash flows as follows: Initial Investment at start of project =$3,600,000 Cash Flow at end of year 1=$500,000 Cash Flow at end of years 2 through 6=$625,000 each year Cash Flow at end of years 7 through 9=$530,000 each year Cash Flow at end of year 10=$385,000 SOB financial manager would like to evaluate Project A through various capital budgeting models to ensure that this project is worth investment Please answer the following questions: 1. SOB wants to know the payback period of this project. Suppose the cutoff period is 6 years. Based on the decision rule for the payback period, determine whether SOB should accept or reject this project. Show your work and provide reasons for your answer 2. Suppose the appropriate discount rate is 14% and SOB wants to know this project's net present value (NPV) Based on the NPV decision nule, determine whether SOB should accept or reject this project Show your work and provide reasons for your answer 3. Suppose the approprate hurdle rate is 14% and SOB wants to know this project s internal rate of retum (IRR) Based on the IRR decision rulle detemine whether SOB should accept or reject this project Show your work and provide reasons for vour ansiver. 4. Based on your answers in questions 13, do you find the pay back period, NPV, and IRR yield the same result regarding whether or not it is wionth investing in Project AP If there is an inconsistency, which method would you recommend to the financial manager at SOB? Provide your reasons, and discuss some of the strengths and shoitcomings of vour recommended method. 5. Suppose the SOB financial manager is also considering an alternative investment namely project B, whose NPV is $80,350. Assume that Project A and B are mutually exclusive (i.e, the companies must choose a single project due to its limited resources for investing in multiple projects simultaneousty). Would you recommend the SOB to invest in Project A or B? Provide reasons for your