$(15$ points$)$ We need to invest $10000$ on a new project at year $0$ that will cost $500$ yearly

and earn $2000$ yearly starting at year $1.$ Monthly MARR is $1\%$ that compounds quarterly.

a$.(3$ points$)$ How many years need to pass in order to pay back all the cost of initial

investment using simple payback?

b$.(10$ points$)$ How many years need to pass in order to pay back all the cost of initial

investment using discounted payback?

c$.(2$ points$)$ Assuming you are using payback period as your primary method for

comparing alternatives, is this project desirable?