Sony Corporation is considering a project that requires an initial investment of $750,000. The asset will be depreciated over five years at 20% per year. The cash flows are expected to be:

Year	Inflow ($)	Outflow ($)
Year 1	230,000	95,000
Year 2	240,000	100,000
Year 3	250,000	105,000
Year 4	260,000	110,000
Year 5	270,000	115,000

a. What is the payback period?
 b. Calculate the accounting rate of return (ARR) each year and the average.
 c. Assuming a cost of capital of 9%, what is the net present value (NPV) of the cash flows?
 d. Should Sony Corporation accept the project?