Clyde has the opportunity to purchase a large building for $300,000 He will need to spend additional $50,000 to renovate and convert to an upscale dinning establishment. He estimates the following after tax cashflows.

a. The Payback period of the venture is [ ] years (round to the nearest year).

b. If Clyde desired payback period is less than 3 years, Clyde will [accept/reject] the venture

Year	Cash-flows
1	80,000
2	100,000
3	110,000
4	120,000
5	150,000
6	150,000