Sun Peaks Ski Resort is considering an investment of $ 250,000 in a capital project. The project will generate the following net cash inflows over the next 4 years.

Year

1 year 100,000

2 year 90,000

3 year 60,000

4 year 50,000

The companys cost of capital is 10%, compounded annually. Calculate the following: a) The payback period

b) The discounted payback period

c) The net present value

d) Would you recommend they go ahead with the project? Why?