We are considering an investment project which is expected to last for 10 years. The project is so specific that the return (revenue) is provided only at the end of the project in the amount of 600,000 USD.

a) Please calculate what amount you have to invest now in this project so that the internal rate of return on this project would be 15%.

b) Please indicate what returns (revenues) would have to be from this project with the same amount invested and duration (10 years) as the analysed one, if both projects would have the same simple return period, but this project would provide a fixed return (income) every two years.

c) Please comment which projects should be selected for implementation in terms of a simple payback period, those discussed in the task or another project for which the value of this indicator (PP) would be 2.5 years?