World Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Show all work and discuss each part. WACC: 9.75%

Year Cash flows

0 $1200

1 $400

2 $425

3 $450

4 $475

a. Calculate NPV, IRR

b. Calculate the payback and discounted payback.

c. Calculate the Profitability Index (PI)

d. Make a decision as to what you would recommend about this project based on your results above and why?