Compute the payback period for an investment given the following net cash flows. (Round your answer to one decimal place.)

YearNet Cash Flows per YearCumulative Net Cash Flows

Initial investment($200,000)($200,000)

1$20,000($180,000)

2$30,000($150,000)

3$40,000($110,000)

4$50,000($60,000)

5$60,000$0

6$70,000$70,000

Requirements:

1.Determine the exact payback period.

2.Calculate the cumulative net cash flows for each year.

3.Identify the year when the investment is fully recovered.

4.Assess the overall profitability of the project.