1. PANDA Paper Industry Co. uses the discounted payback period method to evaluate investments in capital assets. The company expects the following annual cash flows from an investment of $4,500,000: Year Net Cash Salvage value Flow 1 800000 1000000 2 800000 900000 3 900000 800000 4 900000 700000 5 1000000 500000 6 1000000 500000 7 1000000 500000 1000000 8 500000 9 1000000 500000 The company's cost of capital is 12%. a. Determine the discounted payback period of the investment. b. Is the investment desirable if the required payback period is 6 years or less