A hotel manager wishes to choose between two alternative investments giving the following annual net cash inflows over a five-year period:

Year	Alternative 1	Alternative 2
1	$ 8,400	$24,200
2	11,600	19,800
3	17,000	17,200
4	23,000	10,800
5	24,000	8,000

The amount of the investment under either alternative will be $70,000.

a. Using the payback period method, in which year, under both alternatives, will she have recovered the initial investment?

b. Using NPV at 10 percent, would either alternative be a good investment?