AT&T Inc. is considering a project that requires an initial investment of $300,000. The asset will be depreciated over five years at 20% per year. The cash flows are expected to be:

Year	Inflow ($)	Outflow ($)
Year 1	100,000	40,000
Year 2	110,000	45,000
Year 3	120,000	50,000
Year 4	130,000	55,000
Year 5	140,000	60,000

a. What is the payback period?
 b. Calculate the internal rate of return (IRR).
 c. Assuming a cost of capital of 8%, what is the net present value (NPV) of the cash flows?
 d. Should AT&T proceed with the project?