Suppose Palmer Properties is considering investing $5 million today (i.e., C₀ = -7,000,000) on a new project that is expected to last for 9 years. The project is expected to generate annual cash flows of C₁ = -500,000; C₂ = 1,200,000, C₃ = 1,500,000 and then $2,000,000 for period C₄ through C_9. If the discount rate is 11% and management's payback period cutoff is 6 years:

(a) What is the payback period for the project? Show your work

(b) What is the net present value of the project ? Show your work

(c) What is the internal rate of return on the project ? Show your work

(d) Under which method(s) above should the company accept the project (applying the acceptance rules)? Explain