Year	Cash Flow
0	($200,000)
1	($920,000)
2	$1,582,000
3	($1,205,200)
4	$343,200

a. Why is it difficult to calculate the payback period for this project?

b. Calculate the investment's net present value at each of the following discount rates: 0%, 5%, 10%, 15%, 20%, 25%, 30%, and 35%.

c. What does your answer to part b. tell you about the project's IRR?

d. Should Froggle invest in this project if its cost of capital is 5%? What if the cost of capital is 15%?

e. In general, when faced with a project like this one, how should a firm decide whether to invest in the project or reject it?