Risky Business is looking at a project with the estimated cash flow as follows:

Initial investment at start of project:$12,200,000

Cash flow at end of year one:$1,952,000

Cash flow at end of years two through six:$2,440,000 each year

Cash flow at end of years seven through nine:$2,342,400 each year

Cash flow at end of year ten:$1,673,143

Risky Business wants to know the payback period, NPV, IRR, MIRR, and PI of this project. The appropriate discount rate for the project is 10%. If the cutoff period is six years for major projects, determine whether the management at Risky Business will accept or reject the project under the three different decision models.

What is the payback period for the new project at Risky Business?

Under the payback period, this project would be:

What is the NPV for the project at Risky Business?

Under the NPV rule, this project would be

What is the IRR for the new project at Risky Business?

Under the IRR rule, this project would be