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Year -------- Cash Flows 0 -27,500 1 9,750 2 10,500 3 8,325 4 13,000 Above are the projected cash flows for a potential project. The

Year -------- Cash Flows

0 -27,500

1 9,750

2 10,500

3 8,325

4 13,000

Above are the projected cash flows for a potential project. The cost of capital is 7.50%, and the firm has a policy of accepting only projects that pay back within 3 years

What is the payback period?

What is the IRR of the project?

What is the NPV of the project?

Should the project be accepted?

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