You are evaluating a project where the expected cash flows over its 4-year-life are as follows: . Year Expected Cash Flows 10 $8,0000 20 12,500 30 17,8000 40 14,2500 1 1 The project requires machinery to be purchased before the commencement of the project of $40,000. The interest rate is at 12% p.a., with interest compounding annually. I 1 Year 20 30 40 Discount Factor at12% 0.8930 0.7970 0.7120 0.6360 Required (a)---Discuss-why forecasted cash flows rather than forecasted profits are used-to-1 evaluate capital investments? 1 (b) - Calculate the Payback Period of the project. I (c) - Calculate the Net Present Value (NPV) of the project. I 1 (d) Should you undertake the investment? Which investment evaluation technique did you: base your decision on and why