Questions 2-5 are based on the following information. Steely Dan Corporation is considering a new project. The initial investment and future cash flows are shown below. The discount rate is 10 percent. The required rate of return is 11.5 percent. The maximum payback period is 2 years. Year 0 1 Cash Flow -$48, 100 15,600 28,900 15,200 N 3 2. What is the net present value of the project? a. $2,687.98 b. $1,618.48 C. $1,386.10 d. $1,035.24 3. What is the Internal Rate of Return (IRR)? a. 11.62% b. 11.26% C. 12.26% d. 12.04% 4. What is the payback period? a. 3 years b. 2.42 years c. 2.24 years d. 2.32 years 5. Should Steely Dan accept this project? Why? a. No, because the payback period is longer than 2 years b. Yes, because net present value is positive and this outweighs all other information. C. Yes, because internal rate of return exceeds the required return and this outweighs all other information. d. No, because it doesn't add value to the shareholders End of Questions 2-5