Beta Technologies is assessing a new project which requires an upfront investment of EUR 200,000 The expected cash flows from the project are as follows Year Cash Flows (Project Z) Initial Investment (200,000) 1 50,000 2 60,000 3 70,000 4 80,000 Requirements a Determine the payback period for Project Z b Calculate the NPV of the project if the discount rate is 7 c Should Beta Technologies proceed with the project based on the NPV rule Explain your reasoning

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Question: Beta Technologies is assessing a new project which requires an upfront investment of EUR 200,000. The expected cash flows from the project are as follows:

Beta Technologies is assessing a new project which requires an upfront investment of EUR 200,000. The expected cash flows from the project are as follows:

Year	Cash Flows (Project Z)
Initial Investment	(200,000)
1	50,000
2	60,000
3	70,000
4	80,000

Requirements: a. Determine the payback period for Project Z. b. Calculate the NPV of the project if the discount rate is 7%. c. Should Beta Technologies proceed with the project based on the NPV rule? Explain your reasoning.

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