Question: A project that costs $ 2 , 1 0 0 to install will provide annual cash flows of $ 5 4 0 for the next

A project that costs $2,100 to install will provide annual cash flows of $540 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?
Note: Round your answer to 3 decimal places.
b. Will the project be accepted?
c-1. What is the project NPV if the discount rate is 3%?
Note: 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 the project NPV if the discount rate is 10%?
Note: 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 firms decision change as the discount rate changes?

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