1. Kylie Sorensen has just invested $1,720,000 in a new biomedical technology. She expects to receive the following cash flows over the next 5 years: $350,000, $490,000, $860,000, $490,000, and $370,000.

What is the payback period for Kylie? Round your answer to one decimal place.

2.Skiba Company is thinking about two different modifications to its current manufacturing process. The after-tax cash flows associated with the two investments follow:

Year		Project I		Project II
0		$(100,000)		$(100,000)
1				63,857
2		134,560		63,857

Skiba's cost of capital is 8%.

Required:

1. Compute the NPV and the IRR for each investment. Round present value calculations and your final NPV answers to the nearest dollar. Round IRR answers to the nearest whole percent.

	NPV	IRR
Project I	15364$	16%
Project II	$______	18%

JUT MISSING NPV FOR PROJECT 2 AND IS NOT 13874