As the Project Manager of your company, consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9% and required payback is 4 years.
(a) Compute the payback period for this project.
(b) Compute the NPV for this project.
(c) Would you accept this project and what decision rule should be the primary decision method?