A project that costs $2,100 to install will provide annual cash flows of $540 for the next five years. The firm accepts projects with payback periods of less than four years.

AWhat is this project's payback period? (Note: Round your answer to 3 decimal places.)

BWill the project be accepted?

c-1. What is the project's NPV if the discount rate is 3%? (Note: A negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

c-2. Should this project be pursued?

d-1. What is the project's NPV if the discount rate is 10%? (Note: A negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

d-2. Should this project be pursued?

EWill the firm's decision change as the discount rate changes?

a. Payback period	Years
b. Will the project be accepted?
c-1. NPV of the project if the discount rate is 3\%
c-2. Should this project be pursued?
d-1. NPV of the project if the discount rate is 10\%
d-2. Should this project be pursued?
e. Will the firm's decision change as the discount rate changes?