Verizon Communications is evaluating a project that involves an initial investment of $800,000. The asset is depreciated over five years at 20% per year. The projected cash flows are as follows:

Year	Inflow ($)	Outflow ($)
Year 1	250,000	90,000
Year 2	260,000	95,000
Year 3	270,000	100,000
Year 4	280,000	105,000
Year 5	290,000	110,000

a. What is the payback period?
 b. Calculate the internal rate of return (IRR).
 c. Assuming a cost of capital of 9%, what is the net present value (NPV) of the cash flows?
 d. Should Verizon Communications accept the project?