Consider the new product launch project that Kerring-Sloan is considering. The PTA-09 project is a proposed EV Fishing Boat that requires an initial investment of $2,600,000 in production infrastructure in 2020 (year 0) for production to begin in 2021. Cash flows for the project for years 0 - 8 are shown below. The introduction of a new product at year 9 will terminate further cash flows from this project. Assume a cost of capital of 9% where necessary to solve the following problems.

Year		PTA-09
0		-$2,600,000
1		$520,000
2		$850,000
3		$985,000
4		$925,000
5		$770,000
6		$500,000
7		$100,000
8		$55,000

1- What is the discounted Payback Period for project PTA-09?

a) 4.10 years

b) 2.95 years

c) 4.56 years

d) 3.26 years

e) 3.99 years

2- Continuing with the new product launch project that Kerring-Sloan is considering, what is the NPV of the PTA-09 project?

a) $1,886,764

b) $782,027

c) $3,486,663

d) $889,273