Problem:

Winston Clinic is evaluating a project that costs $52,125 and has expected net cash inflows of $12,000 per year for eight years. The first inflow occurs one year after the cost outflow, and the project has a cost of capital of 12 percent.

Required:

Question 1: What is the project's payback?

Question 2: What is the project's NPV? Its IRR? Its MIRR?

Question 3: Is the project financially acceptable? Explain your answer.

Note: Please show how you came up with the solution.