1. Calculate the payback period for the following investment proposal. Investment Annual Net Cash Flows 1 2 3 4 5 6 7 8 9 10 250 86 50 77 52 41 70 127 24 6 40 Payback Period:

2.A 4-year project has a projected cash inflow of $5,000 in the first year, $10,000 in the second year, $15,000 in the third year, and $20,000 in the fourth year. It will cost $19,000 to implement the project. The required rate of return is 25%. What is the NPV?