a.On a timeline,compute the NPV and interpret your answer .Based on the NPV should the projected be accepted or rejected.

b.Compute the NPV using cash flow keys.List the Keys and enteries.

c.Compute the IRR using cash flow keys.List the keys and enteries.Interpret your answer and compute the payback period.

d.Assuming the pre-specified cut off period is 2.5 years,should the project be accepted or rejected?Why?Explain.

Cash flows $12,000 investment Year 0 Wacc = 12% 8,000 ,000 2 7 w 5,000 4 1,000