Your grandmother set up a $1,000,000 fund for you. You need to invest this money in a fixed asset project. As a result of your feasibility study, you predict the following cash flow for the next 5 years:

Years        Cash flows           DF (10%)

1                  250.000              0,909

2                  280.000              0,826

3                 300.000               0,751

4                 300.000              0,683

5                 300.000               0,621

The salvage value of the project is expected to be $400,000. Assuming WACC is 10%;

a) Calculate the project's IRR and discounted payback period.

b) Briefly state the location you chose, which sector you chose and why.