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1. Hilary, a manager of a family restaurant, is considering a renovation investment that would expand the operation's menu offerings. The project will have an initial cost of $36,000. Annual cash inflow from the project is expected to be $12,000 while cash outflow is expected to be $5,000 which will result in $7,000 annual net cash inflows for the next 8 years. What is the payback period for the proposed investment? Year Cumulative Cash Flows Payback Period Cash Flows 0 1 2 3 4 4 5 5 6 7 8