You are the financial analyst at Wellingoton Laboratories Ltd,a new Orleans, USA baked bulk drugs manufacturer which is evaluating the following project manufacturing a new compound.

Year Cash Flow 0 -34000 1 16000 2 18000 3 8000 4 12000 5 7000

The required rate of return for the company is 20 percent.

a. Calculate the payback period of the project. Should the firm accept the project? why or why not?

b. Calculate the discounted payback period of the project, should the firm accept the project? why or whynot? c. Calculate the NPV of the project, Should the firm accept the project? Why or Wy not?