You are reassessing the port expansion to now accept $15\%$ more cargo per day. The expansion

will cost $$65,000,000,$ resulting in annual cost savings of $$3,000,000$ alongside revenues of

$$12,000,000.$ The expansion will now operate for eight years before needing replacement. You

can still currently obtain subsidized funding from the FTA at $3\mathrm{.}5\%.$

a$.$ Based on the NPV rule, should you pursue the project?

b$.$ Based on the IRR rule, should you pursue the project?

c$.$ If your CEO requires a payback of $<mn\; id="EditorElement\_427342">5</mn>$ years, should you pursue the project?

d$.$ Should you pursue the project if your CEO requires a discounted payback of $<mn\; id="EditorElement\_427213">5</mn>$ years?

e$.$ Should you accept the project based on the profitability index?