DYI Construction Co. is considering a new inventory system thatwill cost $750,000. The system is expected to generate positive cash flows overthe next four years in the amounts of $350,000 in year one, $325,000 in yeartwo, $150,000 in year three, and $180,000 in year four. DYI's required rate ofreturn is 8%.

15.What is the payback period of this project?

A) 4.00years

B) 3.09years

C) 2.91years

D) 2.50years

16.What is the net present value of this project?

A)$104,089

B)$100,328

C)$96,320

D) $87,417