An investment is expected to generate the following cash flows:

Year 0

-$2,000,000

Year 1

$1,000,000

Year 2

$0

Year 3

$500,000

Year 4

$500,000

Year 5

$100,000

The discount rate is 10% per year.

a. What is the net present value of the investment? Show your work.

b. What is the payback period of the investment? Show your work.

c. What is the discounted payback period of the investment? Show your work.