Tyler, Inc., is considering switching to a new production technology. The cost of the required equipment will be $3,417,321 . The discount rate is 13.68 percent. The cash flows that the firm expects the new technology to generate are as follows.

Years		CF
0		$(3,417,321)
12		0
35		$914,438
69		$1,469,999

a. Compute the payback and discounted payback periods for the project. (Round answers to 2 decimal places, e.g. 15.25.)

The payback for the project is ____ years, and the discounted payback period is years.

b. What is the NPV for the project? Should the firm go ahead with the project? (Round answer to 2 decimal places, e.g. 15.25.)

The NPV of the project is $ _______, and using the NPV rule the project should be accepted or rejected .

c. What is the IRR, and what would be the decision based on the IRR? (Round answer to 2 decimal places, e.g. 15.25.)

The IRR of the project is ____________%, and using the IRR rule the project should be rejected or accepted .