A company Chibwe Ltd is considering investing in a project for which the following

information is provided:

Initial capital expenditure $75000$

Profit$/($Losses$)$ after depreciation:

Year $130000$

Year $230000$

Year $320000$

Year $4(10000)$

Year $5(10000)$

The project will be operational for a period of five $(5)$ years, at the end of which time there is not

expected to be any scrap value. The company estimates its cost of capital at $15\%.$

calculate the following:

$($a$)$ The payback period in years and months $(5$ marks$)$

$($b$)$ The Net Present Value $($NPV$)$ for the investment; $(5$ marks$)$