You are given the following information for a project: The initial investment is $750,000 and the cost of capital is 10%. The project has a six year life and the projects cash flows are expected to be:

Year	Total Cash Flow
1	$150,000
2	$250,000
3	$300,000
4	$400,000
5	($50,000) --> negative cash flow
6	$350,000

1. Determine the payback period. If the payback required by the company is 3 years, what is your recommended decision on this project? 3.125 yrs - reject

2. Determine the NPV for the project. What is your recommended decision? 258,095

3. How much could the firm afford to pay (instead of $750,000) for the project and still decide to go forward (i.e. have an NPV>0)? Assume the cash flows are as shown for years 1-6. 1,008,095- change the initial investment until the NPV=0

4. Determine the MIRR for the project. The company requires an MIRR in excess of their cost of capital what is your decision? 15.36% - accept