With a discount rate of 12.5% discount rate, a. Determine the payback period and discuss whether...

   

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With a discount rate of 12.5% discount rate, a. Determine the payback period and discuss whether this project should be accepted if the cut-off period set by the company for such projects is 3 years [2 marks] b. Determine the net present value and discuss whether this project should be accepted. [3.5 marks] c. Show that the IRR of the project is approximately 20.826% and discuss whether this project should be accepted. d. Should the project be accepted finally? Show your working clearly and provide your answer to 2 decimal places. [3.5 marks] [1 mark] Year 0 Cash Flow Project Z -172,800 86,400 Year 1 Cash Flow Year 2 Cash Flow 69,120 Year 3 Cash Flow 54,720 Year 4 Cash Flow 34,560 Year 5 Cash Flow 17,280 With a discount rate of 12.5% discount rate, a. Determine the payback period and discuss whether this project should be accepted if the cut-off period set by the company for such projects is 3 years [2 marks] b. Determine the net present value and discuss whether this project should be accepted. [3.5 marks] c. Show that the IRR of the project is approximately 20.826% and discuss whether this project should be accepted. d. Should the project be accepted finally? Show your working clearly and provide your answer to 2 decimal places. [3.5 marks] [1 mark] Year 0 Cash Flow Project Z -172,800 86,400 Year 1 Cash Flow Year 2 Cash Flow 69,120 Year 3 Cash Flow 54,720 Year 4 Cash Flow 34,560 Year 5 Cash Flow 17,280