Answer only PART 2

Assume that the firm invests $70,000 today to get $15,000 at Year 1 (i.e. one year from now), $22,000 at Year 2, $20,000 at Year 3, $15,000 at Year 4, $16,500 at Year 5, $22,500 at Year 6. Whats the Net Present Value of this investment? Assume the Interest (discount) rate of 10.40%.

Ans: $9,086.34

PART 2

What is this project's (non-discounted) Payback Period?

What is this project's Discounted Payback Period?