The Beaver Island Resort is evaluating two alternatives for anew marina. The manager has estimated the following annual net cash flows for each alternative:

Year Alternative 1 NCF Alternative 2 NCF 0 —$150,000 —$100,000 1 + 30,000 + 30,000 2 + 50,000 + 50,000

) + 20,000 + 20,000 4 + 50,000 + 10,000 5 + 80,000 + 5,000 Required:
1. Calculate each alternative’s payback period.
2. Estimate each alternative’s IRR.
3. Using ak, of 10%, calculate the net present value of each alternative.