Question: Question 3 (15 marks) Below are the cash flows for the project GreenYXO. Year 0 1 2 3 4 Cash Flows - 7000 3000 2800

Question 3 (15 marks) Below are the cash flows for the project GreenYXO. Year 0 1 2 3 4 Cash Flows - 7000 3000 2800 2500 3000 a) Based on the payback period, would you accept the project ( 3 decimal places)? Why? The cutoff period is 3 years. Provide the calculation to justify your answer. b) Cite one disadvantage of this criterion of investment. Explain. c) From the six criteria to evaluate projects that we learned, what are all the criteria that do not present the same disadvantage mentioned in b. Explain. Question 4 (10 marks) Draw by hand the NPV profile for the project GreenYXO of question 3 and explain the graph detailed in terms of under which circumstances this project should be accepted or not

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