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

Cost $270,000

Terminal salvage value in 8 years $10,000

Additional annual revenues for 8 years $250,000

Additional annual cash expenses for 8 years $200,000

Estimated useful life in years 8

Minimum desired rate of return 10%

Present value of ordinary annuity, 10%, 8 periods 5.3349

Present value of one, 10%, 8 periods 0.4665

The company uses straight-line depreciation method. Ignore income taxes. Required:

A) Compute the net present value of the investment.

B) Compute the payback period.