You are the CFO of Chargers Inc. and are considering a stadium expansion. The project will cost

$$8,000,000$ to construct but will result in a gain of $$2,000,00$ net income in each of the next

seven seasons. The NFL bank is charging $7\mathrm{.}5\%$ for loans of this risk.

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 $<mn\; id="EditorElement\_2296147">5</mn>$ years, should you pursue the project?

d$.$ Should you pursue the project if your CEO requires a discounted payback of $<mn\; id="EditorElement\_2296018">5</mn>$ years?

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