You are evaluating a project that will cost

$ 515, 000

,

but is expected to produce cash flows of

$ 122 comma 000

per year for

10

years, with the first cash flow in one year. Your cost of capital is

11.1 %

and your company's preferred payback period is three years or less.

a. What is the payback period of this project?

b. Should you take the project if you want to increase the value of the company?

a. What is the payback period of this project?

The payback period is

nothing

years.(Round to two decimal places.)

b. Should you take the project if you want to increase the value of the company?(Select from the drop-down menus.)

If you want to increase the value of the company you

will

will not

take the project since the NPV is

positive

negative

.