Roche Holding AG is considering a project that requires an initial investment of $700,000. The asset will be depreciated over five years at 20% per year. The cash flows are expected to be:

Year	Inflow ($)	Outflow ($)
Year 1	220,000	95,000
Year 2	230,000	100,000
Year 3	240,000	105,000
Year 4	250,000	110,000
Year 5	260,000	115,000

a. What is the payback period?
 b. Calculate the internal rate of return (IRR).
 c. Assuming a cost of capital of 10%, what is the net present value (NPV) of the cash flows?
 d. Should Roche Holding AG proceed with the project?