Victor is considering investing in a project that would require CAD 192,700 initial investment. Cash flows from the project are estimated as below:

Year 1: 53,200 CAD

Year 2: 77,600 CAD

Year 3: 51,000 CAD

Year 4: 26,000 CAD

Required return: 10.50%, Required payback period: 4 years

a) Should Victor invest in this project? Why or why not?

b) What is the IRR (internal rate of return) and payback period of the project?

c) What are the 3 important criteria in evaluating which methods (described in question a and b) to use.