You are asked to evaluate a project. For the project to be accepted, the discounted payback period criteria is that it must be less than 7 years. For the project to be accepted, the IRR criteria is that the IRR must be greater than 8%.

Your calculations show that the discounted payback period is 9 years, but the IRR is 8.5%. Would you accept the project?

You may consider whether the firm can obtain long-term financing of greater than 9 years. Discuss.