TRANS INC (OWNERS OF THE TRANS-ATLANTIC PROJECT), expects a 21% rate of return on their investments. They are considering a 15 year project which will cost them $8m immediately, $10m at the end of each year for the first five years, $2.2m at the end of each year for the next five years, and $3.77m at the end of each year for the last 5 years of the project. Should they take on the project if it will return $3m at the end of each year for the first 3 years, $4m at the end of each year in the next 4 years, and $6m at the end of each year for the last 8 years?

a.  Prepare a fully documented timeline of all cash flows

b.  Calculate the NPV of the project.

c.  Calculate the ROI of the project.

d.  Determine the payback period of the project

e.  Would you go ahead with the project? Why/why not?