Coffee Beanie is considering a new location for a coffee shop. The store requires an
investment of $400,000 and has a useful life of five years with no estimated salvage value.
The minimum acceptable return is 8%.
The estimated net income from the new store is as follows:

Year		Net Income
1		10,000
2		20,000
3		30,000
4		20,000
5		10,000
Total		90,000

Calculate the Net Present Value (show calculations above)
Calculate the Payback Period
Should the company make the investment? Why?