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You are analyzing a project and have gathered the following data:
| Year | Cash Flow |
| 0 | -$165,000 |
| 1 | $56,400 |
| 2 | $61,800 |
| 3 | $72,000 |
| 4 | $75,000 |
| | |
| Required payback period: | 2.5 years |
| Required return: | (11%) |
1. What is the payback period for this project? Should you take this project based on the payback period?
2. What is the internal rate of return for this project? Should you take this project based on the internal rate of return?
3. What is the net present value for this project? Should you take this project based on the net present value?
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