A project has an initial cost of $1000. Incremental cash flows are estimated to be $200 each year for 8 years. Use a discount rate of 8% (PVIF yr 1: .926, yr 2: .857, yr 3: .794, yr 4: .735, yr 5: .681, yr 6: .630, yr 7: .583, yr 8: .540). Calculate the:
Payback period
Discount Payback period
Net present value
Discuss the conditions under which you would or would not accept the project. Include in your discussion the IRR and the MIRR.