A project is expected to cost $250,000, with the capital due immediately. Four annual cash flows are promised at the end of each respective year from the project as follows: Year 1: $50,000 Year 2:...

A project is expected to cost $250,000, with the capital due immediately. Four annual cash flows are promised at the end of each respective year from the project as follows:

Year 1:  $50,000

Year 2:  $100,000

Year 3:  $100,000

Year 4:  $100,000

The hurdle rate for the project is 15%. The manager will only use NPV for the project decision.

5. WHAT is the NPV of this project?

6. What is the Payback?

7. What is the IRR?

8. Do you accept the project?