Suppose Peach Paving Company invests \($1\) million today on a new construction project.

The project will generate annual cash flows of \($150,000\) in perpetuity. The appropriate annual discount rate for the project is 10 percent.

a. What is the payback period for the project? If the Peach Paving Company desires to have a 10-year payback period, should the project be adopted?

b. What is the discounted payback period for the project?

c. What is the NPV of the project?