1. A company requires an initial investment of $40000. The estimated cash flows are as follows: Year

1- 7000

2 7000

3 7000

4 7000

5 7000

6 8000

7 10000

8 15000

9 10000

10 4000

1. Calculate Pay-back period

. 2. Calculate Net Present Value at 10% cost of capital ( rate of discount)