year	cash flow
0	-$175,000
1	$56,400
2	$61,800
3	$72,000
4	$75,000

Required payback limit is 2.5 years

Required Return is 14.5%

A. Based on the payback period of ___ years for this project and required payback back period limit of 2.5 years (stated above), you should ____ the project.

a. 2.79, accept

b. 3.79, accept

c. 2.46, reject

d. 2.79, reject

e. 3.79, reject

B. Based on the internal rate of return of ____ percent for this project, and projects required rate of return is 14.5%, you should ___ the project

a. 14,67, accept

b. 17.91, accept

c. 14.67, reject

d. 17.91, reject

e. 18.46, reject

C. based on the NPV of ____ for this project (using 14.5% required rate of return) you should _____ the project

a. 187,995.84, accept

b. -175,000, reject

c. 187,995.84, reject

d. 12,995.84, accept

e. 12,995.84, reject