A company is considering investing in project X. The company has a cost of capital of 8% p.a. Project X is a 8-year project with an initial cost of $350,000. The project will generate the following cash flows each year end.

Years	Cash flows ($)
1	88,000
2	98,000
3	108,000
4	118,000
5	128,000
6	138,000
7	148,000
8	-405,000

1. Calculate the payback period (in years) for project X. Round your answer to 2 decimal places. Do not put years. Do not use comma separators. E.g. 1234.56 (2 marks)

   Answer years

2. Calculate the net present value (NPV) for project X. Round your answer to the nearest cent. Do not put $. Do not use comma separators. E.g. 1234.56 (2 marks)

   $Answer

3. If project X is independent to all other investment options. Would you recommend using the IRR method to decide whether to accept project X? (1 mark)

   Yes

   No