A PROJECT HAS AN INITIAL OUTLAY $($AT TO$)$ OF $$125,000$ WITH INFLOWS OF $$20,000$ IN YEAR ONE, $$500000$ IN YEAR TWO, $$40,000$ IN YEAR THREE, AND $$30,000$ IN YEAR FOUR. ASSUME THAT THE COST OF CAPITAL $($THE REQUIRED RATE OF RETURN$)$ IS $6\mathrm{.}5\%$

A$)$ WHAT IS THE PAYBACK PERIOD FOR THE PROJECT?

B$)$ WHAT IS THE NET PRESENT VALUE $($NPV$)$ FOR THE PROJECT?

C$)$ WHAT IS THE INTERNAL RATE OF RETURN $($IRR$)$ FOR THE PROJECT?

D$)$ What is the modified internal rate of return $($MIRR$)$ FOR THE PROJECT?

E$)$ SHOULD THE COMPANY PURSUE THE PROJECT?