1.) You work for a professional sport franchise that is considering purchasing a new digital scoreboard or renovating signage area on the outside of the stadium. The franchise can take out one loan at 7% interest that it can use for either investment but not both investments. Use the following information to decide whether or not to buy the scoreboard.

Scoreboard

The scoreboard will cost $100,000. You can trade in the old scoreboard for a $5,000 discount. Small changes to the stadium are required to install the new board, totalling $20,000. Installation will cost $3,000.

The scoreboard will have a useful life of 10 years. Straight-line depreciation can be applied to the asset. The company's tax rate is 21%.

The franchise expects to sell an extra $20,000 worth of sponsorships a year with the new scoreboard. Increases in fan satisfaction are also expected to increase ticket revenue by $10,000 a year. The scoreboard will also increase maintenance and utility costs by $2,000 a year.

C.) what is the project's payback period? (please show your work)