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 Cash Flows Cumulative Cash Flows Payback Period 0 1 1 N 3 4 5 6 7 8