DPLEASE USE THE SALVAGE VALUE

PANDA Paper Industry Co. uses the discounted payback period method to evaluate investments in capital assets. The company expects the following annual cash flows from an investment of $4,500,000: Year Net Cash Salvage Flow value 1 800000 1000000 2. 800000 900000 3 900000 800000 4 900000 700000 5 1000000 500000 6 1000000 500000 7 1000000 500000 8 1000000 500000 9 1000000 500000 The company's cost of capital is 12%. a. b. Determine the discounted payback period of the investment. Is the investment desirable if the required payback period is 6 years or less