YBZ, Inc., is considering a typical project that costs $51,500 now and will result in net cash inflows $6,300 one year from now, $6,800 two years from now, and $8,200 three years from now. For the next ten years, the net cash inflows will be the same as the $8,200 three years from now except that these net cash inflows will go up with inflation. (As a result there will be a total of 13 years of net cash inflows.) The riskfree return on YBZ is 7.20%, whereas YBZ pays 7.80% on its debt. YBZ borrows 38.00% of its funds. The marginal tax rate for YBZ is 41.00% and the beta on YBZ's stock is 1.2. Assume expected inflation is 4.20% and the expected return on the market is 14.60%.

a. What is the required rate of return on this project?

b. What is the NPV of this project?

c. Should YBZ invest in this project? (Yes or No)