You are considering a project that will require an initial outlay of $54,200. This project has an expected life of 5 years and will generate after-tax flows to the company as a whole of $20,608 at the end of each year over its 5-year life. In addition to the $20, 608 cash flow from operations during the fifth and final year, there will be an additional cash outflow of $23,608 at the end of the fifth and final year associated with the removal of environmental waste, making the cash flow in year 5 equal to $-3,000.

Year	After-tax CF
0	-$54,200
1	$20,608
2	$20,608
3	$20,608
4	$20,608
5	-$3,000

The firms capital budgeting rule requires managers to only accept projects that pass the NPV and one other technique. If the firms cost of capital is 15%,

1. (2 pts) calculate the payback period. The payback rule is three years;
2. (3 pts) calculate the net present value (NPV);
3. (3 pts) calculate the IR;
4. (2 pts) based on the answers above, should the project be accepted? You must explain.