Final answer:
The question relates to finance and involves evaluating a project's profitability using its initial cost, cash inflows, and discount rate. The calculation would typically use the Net Present Value method, which compares the present value of cash inflows to the initial investment.
Step-by-step explanation:
This question pertains to the field of finance and concerns the evaluation of a project using methods like Net Present Value (NPV) or Internal Rate of Return (IRR). Given a project with an initial cost (also known as the initial investment) and a series of cash inflows, these methods typically involve discounting future cash flows back to their present value at a given discount rate or cost of financial capital.
In this case, the initial cost is $109,200, there's a discount rate of 15.5% and cash inflows in subsequent years. The goal is to determine whether the project is worth investing in, based on the ability to recover the initial investment and earn a profit that justifies the risk taken.
Additionally, there is mention of a 9% interest rate and a 5% return to society, which suggests that there may be a component related to socially responsible investing (SRI) where financial returns are considered alongside social and environmental impact.