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92: An investment of $200,000 is expected to generate the following WW,000 is expected to generate the following cash inflows in six years: Year 1:

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92: An investment of $200,000 is expected to generate the following WW,000 is expected to generate the following cash inflows in six years: Year 1: $70,000 Year 2: $60,000 Year 3: $55,000 Year 4: $40,000 Year 5: $30,000 Year 6: $25,000 Required: Compute payback period of the investment. Should the investment be made if management wants to recover the initial investment in 3 years or less?(25 marks)

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