Accounting

Initial investment: $70,000 Net cash flow year 1: (20,000} Net cash flow year 2: 10,000 Net cash flow year 3: 20,000 Net cash flow year 4: 40,000 Net cash flow year 5: 30,000 Estimated sale of truck year 5: 10,000 If your required payback period is 3 years, what would be your decision based on the payback period? .{calculate the payback period in years rounded using 2 decimals) mm Accumcashnaw _ Payback Period = Decision? Why? Question 3: (9 marks) If your required rate of return is 8%, what would be your decision based on the net present value method (NPV)? Use the table below to calculate NPV. mnm_ Present Value Decision? Why