216.Castle Ltd is attempting to evaluate the feasibility of investing $450,000 in a new printing machine with a five-year life. The company has estimated the cash inflows associated with the proposal as shown below. The company has 11% cost of capital.

Year Cash Inflows

1 $120,000

2 $194,000

3 $186,000

4 $191,000

5 $101,000

Required:

a. Calculate the payback period for the proposed investment.

b. Calculate the discounted payback period for the proposed investment.

c. Calculate the NPV for the proposed investment.

d. Would you, as a financial advisor opt for this investment? Why? Why Not?