You work for a cellphone company and are considering launching a new version of your flagship cellphone called the Blueberry 10. You have collected the following information for this investment:  Purchase of new assets = $5,000,000. o Purchased at time zero. o E.g., purchase new manufacturing equipment. o For simplicity, assume straight line depreciation and a 4-year project life. o Worthless at the end of the project's life.  Projected sales (and cost) of Blueberry 10: o Quantity sold = 5 million. o Selling price per unit = $289. o Total cost of producing one unit = $200.  The investment will hurt sales of the Blueberry 9: o Reduction in quantity sold = 4.5 million. o Selling price per unit = $239. o Total cost of producing one unit = $141.  Your firm spent $200,000 developing the Blueberry 10 over the prior year. Assume that you also have an opportunity cost of capital (discount rate) = 15% and face a tax rate of 40%. Ignore any working capital requirements and inflation.

 Part A (8 marks): Please compute the NPV of the project. Comment on whether you would accept or reject the project under the NPV rule. 

Part B (3 marks): Please compute the IRR of the project (please include 2 decimal places, e.g., 10.00%). Comment on whether you would accept or reject the project under the IRR rule. 

Part C (3 marks): Suppose that your company only accepts projects that pay themselves off in at least 3 years. Would you accept this project under this payback rule? Explain why or why not