10 Problem 8-27 NPV, Payback (LO1, LO4) 8.33 points A project that costs $2200 to install will provide annual cash flows of $570 for the next 5 years. The firm accepts projects with payback periods of less than 4 years. a. What is this project's payback period? (Round your answer to 3 decimal places.) b. Will the project be accepted? 6-1. What is project NPV if the discount rate is 3932 (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) c-2 Should this project be pursued? d-1. What is project NPV if the discount rate is 10%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) d-2. Should this project be pursued? e Will the firm's decision change as the discount rate changes? Answer is complete but not entirely correct. 3 860 Years b. Payback period Will the project be accepted? NPV of the project if the discount rate is 3% Yes 5 410 43 Should this project be pursued? 2 Yas NPV of the project if the discount rate is 10% 1. 5 456 00 2 No Should this project be pursued? Will the firm's decision change as the discount rate changes 4 Problem 8-18 IRR (LO2) 33 oints Marielle Machinery Works forecasts the following cash flows on a project under consideration. It uses the internal rate of return rule to accept or reject projects Skipped -$11,490 +58,900 +59,900 a. What is the project's IRR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) eBook IRR % b. Should this project be accepted if the required return is 14%? Yes O No