4. What is the payback period of the following project?

Initial Investment: $60,000

Projected life: 7 years

Net cash flows each year: $14,000

6. What is the discounted payback period of the project in Question 4, assuming your cost of capital is 7%?

Initial Investment: $60,000

Projected life: 8 years

Net cash flows each year: $15,000

8. Your firm is looking at a new investment opportunity, Project Z, with net cash flows as follows:

---- Net Cash Flows ----

Project Z

Initial Cost at T-0 (Now) ($100,000)

cash inflow at the end of year 1 50,000

cash inflow at the end of year 2 40,000

cash inflow at the end of year 3 30,000

Calculate project Z's Net Present Value (NPV), assuming your firm