Bryant Company has obtained the following data about a possible planned investment:

Cost $270,000

Terminal salvage value in 8 years $10,000

Additional cash operating savings for 8 years $50,000

Estimated useful life in years 8

Minimum desired rate of return 10%

The company uses straight-line depreciation method. Ignore income taxes. The cash operating savings of 50,000 do not include deprecation expense.

Required: A) Compute the net present value of the investment. B) Compute the payback period.