Bower Co. is reviewing a capital investment of $50,000. This project's projected cash flows over a five-year period are estimated at $20,000 each year.

Required:

(a) Calculate the payback period.

(b) Calculate the break-even time. Assume a 12% hurdle rate and use the table below:

(c) Using the results in (a) and (b), make a recommendation for the project.