Comparing all methods.

Risky Business is looking at a project with the estimated cash flow as follows:

Initial investment at start of project:$12,700,000 Cash flow at end of year one:$2,159,000 Cash flow at end of years two through six:$2,540,000 each year Cash flow at end of years seven through nine:$2,590,800 each year Cash flow at end of year ten:$1,992,923

Risky Business wants to know the payback period, NPV, IRR, and PI of this project. The appropriate discount rate for the project is 9%. If the cutoff period is six years for major projects, determine whether the management at Risky Business will accept or reject the project under the five different decision models.