What is Net Present Value (NPV)? Why it is important?

Taskin, Muiz and Jahanara formed TMJ Corporation for supplying sports equipment. TMJ is considering a long-term capital investment and this will require an investment of Taka 2,80,000. The equipment has a useful life of 5 years. Annual net income is expected to be Taka 16,000 a year. Cash flows can be computed by adding back depreciation expense. Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 10% and discount factor for 5 payments @ 10% is 3-79079.

You are requested to :
(a) Compute the cash payback period for the project.
(b) Compute the Net Present Value (NPV).
(c) Compute the Annual Rate of Return (ARR).
(d) Should the project be accepted? Why?