The Redline Software Company is considering a project with the following cash flows. The required rate of return is 11%.

Prj 1 cash flows ($)

Yr 0 -334,000

Yr 1 80,000

Yr 2 120,000

Yr 3 120,000

Yr 4 140,000

a) (5 points) What is the discounted payback period?

b) (6 points) What is the projects net present value and should it be accepted? Why?

c) (6 points) What is the projects internal rate of return and should it be accepted? Why?