1. Calculate the payback, the discounted payback, and the NPV at a required Return of 6%

Year	Cash Flow
0	-$200
1	50
2	60
3	70
4	200

2. A firm evaluates all of its projects by applying the NPV rule. If the required return is 16 percent, should the firm accept the following project? What will be their net profit or loss?

Year	Cash Flow
0	-26,000
1	11,000
2	14,000
3	10,000